MTN plunges into first loss in 8 years

MTN, Africa’s biggest wireless carrier by revenue, posted its first loss since 2016 after the devaluation of the Nigerian naira crimped income from one of its key markets.

The group reported a loss of R7.39 billion in the six months through June, compared with R4.14 billion profit a year earlier.

The loss is MTN’s first since it had to pay a fine of more than $1 billion imposed on the company by the Nigerian government.

The Nigerian naira has slumped more than 70% against the dollar since President Bola Tinubu came to power in May 2023 and began implementing foreign exchange and other economic reforms.

MTN has about 77 million customers in Nigeria and historically derives about a third of its earnings from Africa’s most populous nation.

The company is looking to exit more markets, and is currently in talks over its Guinea Conakry unit, MTN CEO Ralph Mupita said in a call with reporters. It also plans to reduce its stake in the Nigeria business to as low as 65% through sales to local shareholders, he said.