Full Year 2024 MTN Group Ltd Earnings Call Transcript
Key Points
- MTN Group Ltd (MTNOF) reported strong service revenue growth of 13.8% in constant currency, with a notable acceleration to 15.5% in the second half of 2024.
- The company achieved a significant improvement in free cash flow in the second half of the year, reaching ZAR21.5 billion compared to ZAR9.9 billion in the first half.
- MTN Group Ltd (MTNOF) successfully renegotiated tower lease agreements in Nigeria, realizing savings of ZAR1.3 billion in operating expenses.
- The fintech segment showed robust growth, with service revenue rising by 28.5% and advanced services growing by 52% year-on-year.
- The company maintained a strong balance sheet with Group net debt to EBITDA at 0.7 times, well within the loan covenant limit of 2.5 times.
- MTN Group Ltd (MTNOF) faced significant macroeconomic challenges, including the sharp devaluation of the naira, which negatively impacted reported earnings.
- The company reported a decline in reported EBITDA by 33.5% due to currency volatility and inflationary pressures.
- MTN Nigeria experienced a decline in EBITDA margin by 10.3 percentage points to 38.9%, primarily due to the naira devaluation and high inflation.
- The South African prepaid segment underperformed, with the company acknowledging the need for improvement in specific regions.
- MTN Group Ltd (MTNOF) faced operational challenges in Sudan due to ongoing conflict, resulting in a ZAR11.7 billion impairment.
(video playing)
Good afternoon, ladies and gentlemen. My name is Thato Motlanthe. I look after Group Investor Relations for MTN. And it's my privilege and my honor to welcome all of you to the MTN Innovation Center here at 14 Avenue. Yes, I'm wearing a suit apparently, it's a thing.
But it's a great privilege to welcome you to our presentation of the full year results to the period ended 31 December 2024. A special warm welcome to everyone who's in the house. Again, we appreciate you coming in as well as to our MTN family across our markets who've also dialed in. There are a number of platforms that we're broadcasting to today. We've got a webcast that we're live at. We're on CNBC Africa. And we're on the MTN Group YouTube and LinkedIn channels.
So just before we get going, maybe just to start with some of the usual housekeeping. The first one is that you should be seeing the disclaimer and Safe Harbor slide up on the screen that really just covers today's presentation. Secondly, for those of you in the room, just to remind you
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