Africa’s telecom giant, MTN Group Ltd., has reported a staggering 90% decrease in its annual profit attributed to the ongoing forex crisis.
Earnings per share for the year ending December plummeted to a range of 1.07 to 3.21 rand (approximately 6 to 17 US cents), down significantly from the 10.71 rand recorded in 2022.
The currency crisis, fueled by a shortage of dollars and worsened by policy missteps and corruption, has triggered a wave of multinational corporations seeking to repatriate earnings from Africa’s largest economy. Nigeria, known for its youthful population and burgeoning tech sector, grapples with economic challenges despite its abundant natural resources.
Following the profit announcement, the company’s shares tumbled by up to 7.2% in early trading, underscoring investor apprehensions about the difficult operating environment.
Despite the grim financial results, MTN highlighted positive indicators such as a 45% surge in data traffic and a 49% increase in mobile money transaction volumes.
However, the company opted not to offer guidance on its earnings margins, contributing to uncertainties surrounding its future financial outlook.
