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Telecom

MTN’s Earnings Hammered by Free Falling Naira in Nigeria

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Karl Toriola, chief executive officer, MTN Nigeria
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MTN Group has reported a 69 per cent decline in full-year earnings, citing the impact of Nigeria’s naira devaluation and operational difficulties in Sudan.

MTN's Earnings Hammered by Free Falling Naira in Nigeria

Karl Toriola, chief executive officer, MTN Nigeria

The company with headquarters in South Africa announced on Monday that its headline earnings per share—a key profitability measure fell sharply to 98 cents for the year ending December 31, down from 315 cents in 2023.

The financial downturn was largely attributed to Nigeria’s ongoing foreign exchange crisis, which has led to chronic dollar shortages and multiple currency devaluations.

In a bid to stabilize the naira and attract investment, the Central Bank of Nigeria implemented devaluation measures that significantly affected businesses operating in the country, including MTN.

Rising inflation and high interest rates further exacerbated the situation, increasing operational costs and contributing to the telecom giant’s financial slump.

MTN Nigeria, a key subsidiary of the group, bore the brunt of the economic turmoil. Its pre-tax loss surged by over 200 per cent, reaching N550.3bn ($355.76m).

In response, the company has initiated several measures aimed at restoring profitability, including renegotiating tower leases and implementing a tariff hike, which received regulatory approval in January.

Despite the challenging economic environment, Ralph Mupita, CEO, MTN Group said the company remains optimistic about the recovery prospects in Nigeria.

“That pain which we’ve had for 18 months is abating somewhat,” Mupita stated during a media briefing. “The business is growing very strongly. So, I’m actually very bullish and confident that we’ll see a strong recovery in Nigeria.”

Beyond Nigeria, MTN’s performance in Sudan was also hampered by the country’s ongoing armed conflict.

The unrest led to network impairments totalling 11.7bn rands ($643.40m), significantly affecting operations in the capital, Khartoum, where services had been down since April 2023.

However, the company has reported gradual improvements, with some sites being restored in previously conflict-ridden areas.

Despite the downturn, MTN’s overall group service revenue stood at 177.8bn rand, reflecting a 15 per cent decline.

However, in constant currency terms, the company noted a 14 per cent rise in service revenue, buoyed by growth in data, fintech, digital, and enterprise services, particularly in its home market of South Africa, where service revenue increased by 3.1 per cent.

To reassure investors, MTN declared a final dividend of 345 cents per share and projected a minimum dividend of 370 cents for the 2025 financial year.

While the company continues to navigate economic and geopolitical challenges across its markets, the management said it remains focused on strategic initiatives aimed at stabilizing its operations and ensuring long-term profitability.

The telecom giant said it is actively engaging with regulatory authorities, implementing cost-cutting measures, and leveraging its digital transformation strategy to drive revenue growth.

With confidence in Nigeria’s long-term market potential, MTN said it is optimistic about a turnaround despite the current headwinds.


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Telecom

MTN Group to Invest $10Bn in African Expansion by 2030

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MTN Group announced plans to expand its footprint on the conti­nent with a $10 billion investment by 2030.

MTN Group to Invest $10Bn in African Expansion by 2030

The International Telecom­munication Union (ITU), which relayed the information, said the company will inject $2 billion an­nually as part of the initiative.

According to the ITU, MTN Group plans to use these funds to expand and enhance its voice and data networks, aiming to provide better coverage and connectivity for its customers.

The company sees these invest­ments as key to driving digital in­clusion and supporting economic growth in its key markets.

Sub-Saharan Africa, which accounts for 13 of MTN’s target markets, had 527 million unique mobile subscribers in 2023, with a penetration rate of 44%, according to the Global System for Mobile Communications (GSMA).

The region also had 320 million mobile internet subscribers, rep­resenting 27% of the population.

This digital divide presents oppor­tunities for telecom operators.

The GSMA projects that the number of unique mobile sub­scribers in sub-Saharan Africa will reach 751 million by 2030, growing at an annual compound rate of 4.5% from 2023 to 2030.

Mobile internet subscribers are expected to increase to 518 million, with the mobile internet penetra­tion rate reaching 37%, up from 27%.

However, the GSMA estimates that telecom operators will need to invest $62 billion in their networks over the period.

By gaining new subscribers, MTN hopes to solidify its posi­tion as “Africa’s largest mobile network operator.”

The company currently has around 230 million subscribers, competing with Vodacom (205 mil­lion), Airtel Africa (163.1 million), and Orange (160 million).

Despite focusing on infrastruc­ture, MTN must also address chal­lenges hindering the adoption of mobile phone and internet ser­vices.

According to the GSMA, one key obstacle is the high cost of smartphones, which makes them difficult to access for many people.

The GSMA encourages tele­com operators to implement initiatives such as device financ­ing plans, installment payment options, and affordable smart­phones through partnerships with manufacturers.

 

 

 


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ATCON Calls for Telecom Policy Improvements in Nigeria

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Tony Emoekpere, president, ATCON
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Association of Telecommunication Companies of Nigeria (ATCON) has called on the Nigerian Government to address policy gaps in the telecom sector to achieve digital inclusion and transformation.

ATCON Calls for Telecom Policy Improvements in Nigeria

Tony Emoekpere, president, ATCON,  highlighted this during an interview on Tuesday with News Agency of Nigeria (NAN)

“The strategic plan for the Ministry of Communications, Innovation & Digital Economy outlines a clear roadmap for the sector, emphasising digital transformation, economic diversification, and broadband expansion.

“One of the flagship policies driving the industry is the National Broadband Plan 2020-2025, which aims for 70 per cent broadband penetration by the end of 2025.

“While progress has been made, the latest data from the Nigerian Communications Commission (NCC) puts broadband penetration at 44.43 per cent as of December 2024.

“This is a reality check as we still have some distance to cover with less than a year to meet the target,” Emoekpere said

He commended the NCC for its transparency in publishing verifiable data, which he said is crucial for identifying and addressing gaps.

Emoekpere also praised reforms like Right of Way (RoW) policies and broadband infrastructure investment incentives, as well as the Critical National Information Infrastructure (CNII) protections aimed at reducing fibre cuts and vandalism.

However, he stressed the need for full implementation of these measures.

The ATCON president identified multiple taxation, high infrastructure costs, and vandalism as major barriers to progress.

He also emphasised the importance of broadband penetration as the backbone of digital inclusion, noting that without widespread, affordable internet access, even the best digital skills programs would have limited impact.

Emoekpere lauded the government’s plan to train 3 million digital professionals by 2027, calling it a forward-thinking initiative to equip Nigerians for the digital economy.

“For meaningful progress, we need aggressive infrastructure rollout, harmonised taxation, and stronger protection for telecom assets,” he said.


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9mobile Reinforces Innovation Leadership with Echoes, Its Trailblazing AI Storytelling Platform

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9mobile, telecommunications provider in Nigeria, continues to push the boundaries of innovation with the introduction of Echoes, its AI-driven storytelling platform that seamlessly blends artificial intelligence with compelling narratives.

This groundbreaking initiative is designed to forge deeper connections with audiences, enhance brand affinity, boost engagement, and ignite conversations about Nigeria’s rich heritage and culture.

Echoes by 9mobile was born out of the brand’s commitment to celebrating Nigeria’s diverse history, myths, and true events. Through this initiative, the company seeks to educate, engage, and spark meaningful discussions, aligning perfectly with 9mobile’s youthful and dynamic identity.

Storytelling has long been a powerful medium of expression in Nigeria, and 9mobile leveraged this to resonate with its audience in an authentic and impactful way.

According to Director of Marketing at 9mobile Kenechukwu Okonkwo, “As a proudly Nigerian brand, we were deliberate about sharing rich Nigerian stories; capturing facts, myths, and true events that form the fabric of our identity.

“Many of these stories have been forgotten or lost as our cultures evolve. With Echoes, we step away from the Eurocentric narratives that dominate mainstream media and instead celebrate Nigerian stories, told by Nigerians, for Nigerians.”

He further explained that 9mobile carefully curated stories that matter to its audience, stories of resilience, ambition, culture, and everyday life deeply rooted in Nigeria’s history. The initial edition featured iconic locations such as Kajuru Castle, Idanre Hills, and Ogbunike Cave, with later episodes covering historical figures and events like King Eyo Honesty II and Igbo Landing.

Each story underwent meticulous research, AI-assisted scripting, and precise editing to ensure both engagement and alignment with 9mobile’s core values. These stories were then distributed in various formats, including creative Shorts, Reels, TikTok clips, and social media posts across X (Twitter), Facebook, YouTube, and Instagram.

While AI played a crucial role in bringing this project to life, 9mobile ensured its ethical and responsible use.

“We prioritized accuracy and cultural sensitivity, ensuring that each narrative remained a true representation of historical accounts. Additionally, there was no data gatekeeping; audiences could access these stories without restrictions,” Okonkwo emphasized.

The Echoes campaign quickly gained traction, sparking discussions, encouraging user engagement, and strengthening the emotional bond between 9mobile and Nigerian youth.

The initiative amassed over a million views across various channels, reached more than 6.3 million people, and recorded over 7.8 million impressions. As a testament to its innovation, 9mobile was honoured with the “Best Use of AI” award at the prestigious ADVAN Awards.

Commenting on this achievement, 9mobile’s Chief Executive Officer, Obafemi Banigbe, stated: “We are thrilled to receive this recognition, which reaffirms our commitment to innovation and customer-centricity. Echoes is a game-changer in the telecom industry, and we take pride in leading AI-driven innovation in Nigeria.”

The launch of Echoes marks a significant milestone for 9mobile, reinforcing its leadership in leveraging technology to drive business growth and enhance customer satisfaction.

This initiative cements 9mobile’s position as a pioneer in AI adoption within the telecommunications sector, further strengthening its commitment to delivering world-class services.

9mobile’s legacy of AI-driven solutions extends beyond Echoes. In 2020, the company introduced Enin’, Nigeria’s first AI-enabled chatbot developed by a telecom provider. This intelligent virtual assistant revolutionized customer service, allowing users to purchase airtime, subscribe to data plans, access exclusive offers, receive notifications, manage subscriptions, and even connect with live agents seamlessly.

As 9mobile continues to push the boundaries of AI-driven innovation, its dedication to enhancing user experiences and redefining engagement remains stronger than ever.

 


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