South African telecom giant MTN Group has reported a staggering 68.9% decline in full-year earnings, citing currency devaluation in Nigeria and operational challenges in Sudan as major contributors to the slump. The company's headline earnings per share, a key profit metric, dropped to 98 cents for the year ending December 31, down from 315 cents in 2023.

The further devaluation of Nigeria's naira and the ongoing conflict in Sudan significantly impacted MTN Group's performance, despite the company's efforts to mitigate the effects. In a statement accompanying the results, MTN Group CEO Ralph Mupita expressed satisfaction with the company's underlying performance and strategic execution, but acknowledged the challenging operating environment.

Despite the decline in earnings, MTN Group saw growth in its customer base, with total subscribers increasing by 2.2% to 290.9 million. Active data subscribers also rose by 7.7%, reaching 157.8 million. Additionally, Mobile Money's monthly active users grew modestly by 0.9%, reaching a total of 63.1 million.

In terms of revenue performance, MTN Group's data revenue saw a decline of 12.3% on a reported basis, but experienced a 21.9% increase in constant currency terms. Fintech revenue grew by 11% on a reported basis and recorded a more substantial rise of 28.5% in constant currency. Earnings before interest, tax, depreciation, and amortization (EBITDA), before one-off items, fell by 33.5% on a reported basis, but increased by 10.2% to reach R70.1 billion in constant currency.

The EBITDA margin also declined, dropping by 8.9 percentage points to 32% on a reported basis, while in constant currency, it was down by 0.8 percentage points to 38.2%. These declines are a testament to the significant challenges posed by the operating environment, particularly in Nigeria and Sudan.

MTN Group's struggles in Nigeria and Sudan are a reminder of the risks associated with operating in emerging markets. The company's exposure to currency fluctuations and geopolitical instability highlights the need for telecom operators to diversify their revenue streams and mitigate risks through strategic investments and partnerships.

Despite these challenges, MTN Group's growth in customer base and fintech revenue suggests that the company is well-positioned to capitalize on opportunities in the African market. As the company navigates the complexities of the operating environment, it will be crucial to monitor its progress and adapt to changing market conditions.

In conclusion, MTN Group's significant decline in earnings serves as a reminder of the complexities and risks associated with operating in emerging markets. While the company faces significant challenges, its growth in customer base and fintech revenue suggests that it is well-positioned to capitalize on opportunities in the African market.