MTN GROUP LIMITED - MTN Group trading statement for the full year ended 31 December 2024

MTN Group trading statement for the full year ended 31 December 2024

MTN Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1994/009584/06)
(Share code MTN)
(ISIN: ZAE000042164)
(MTN or the Group or MTN Group)

MTN Group trading statement for the full year ended 31 December 2024
MTN is in the process of finalising its results for the year ended 31 December 2024 (FY 24).

The Group expects to report a strong underlying performance for FY 24 despite the challenges in the
operating environment. We are encouraged by the relative stability of some important key
macroeconomic indicators in the second half of FY 24 (H2) – such as inflation and foreign exchange (forex)
rates in some of our key markets. This provided some support to our performance in the period and we
anticipate reporting a pleasing positive momentum in H2 earnings, free cash flow and holding company
leverage ratio.

In our larger operations, we expect to report an improvement in the trajectory of MTN South Africa's
profitability, particularly in H2, as well as strong operational performances in MTN Nigeria, MTN Ghana
and MTN Uganda. The approval of tariff adjustments by regulators in Nigeria, announced in January 2025,
was a significant milestone in ensuring the long-term sustainability of our business and the telecoms
industry in the country. MTN Nigeria has started to implement the tariff adjustments, which represent an
important step towards addressing the impacts of the prevailing economic challenges on the operation.

The financial results, however, remained affected by several external factors including the negative impact
of local currency devaluation in the course of FY 24, particularly the naira, against the US dollar on our
results. This included both translation effects and forex losses in our financials. An additional factor
impacting our results is the operational challenges in Sudan due to the ongoing conflict in the country.

In this context, paragraph 3.4 (b) (i) of the JSE Limited Listings Requirements requires that issuers must
publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists that
the financial results for the period to be reported upon next will differ by at least 20% from the financial
results for the previous corresponding period.

Accordingly, MTN shareholders are advised that MTN expects to report:

•   A decrease in earnings per share (EPS) of greater than 100% (or within a range of -781 cents and -
    736 cents). Considering the reported EPS for the corresponding financial year ended
    31 December 2023 (FY 23) of 227 cents, this translates to a range of -554 cents to -509 cents for FY
    24.

•   A decrease in headline earnings per share (HEPS) of between -79% and -59% (or within a range of -
    249 cents and -186 cents). Considering the reported HEPS for the corresponding financial year FY 23
    of 315 cents, this translates to a range of 66 cents to 129 cents for FY 24.

The difference between FY 24 EPS and FY 24 HEPS is due to the following factors:

•     Impairment losses that mainly relate to investments, goodwill, property, plant and equipment
      primarily related to Sudan totaling approximately -578 cents (2023: -40 cents);
•     An impairment loss on remeasurement of disposal groups of approximately -8 cents (2023: -50 cents);
•     A net loss on the disposal of investments in joint ventures and/or associate and/or subsidiary of
      approximately -36 cents (2023: nil); and
•     The net loss on disposal of property, plant and equipment and intangible assets of approximately -
      7 cents (2023: -1 cent loss).

The anticipated changes in EPS and HEPS for FY 24, are illustrated in the table below:
                          FY 23,    FY 24 expected range        Expected range of        Expected range of
                       (R'cents)                (R'cents)              (decrease)               (decrease)
                                                                               (%)                (R'cents)
    EPS                     227              (554) - (509)               >(100)%              (781) - (736)
    HEPS                    315                  66 - 129             (79) - (59)%            (249) - (186)


HEPS was negatively impacted by some non-operational items of approximately -718 cents (2023: -888
cents) for FY 24. These include:

•     Hyperinflation adjustments of approximately -16 cents (2023: -150 cents);
•     Foreign exchange losses of approximately -598 cents (2023: -715 cents), which includes naira
      depreciation impact of approximately -399 cents (2023: -593 cents);
•     Deferred tax charge of approximately -58 cents (2023: nil); and
•     Other non-operational items of approximately -46 cents (2023: -23 cents).

The financial information on which this trading statement is based has not been reviewed and reported
on by the external auditors of MTN.

The Group's financial results are expected to be announced on the Stock Exchange News Service of the
JSE on or about Monday, 17 March 2025.



27 February 2025

Fairland


Lead sponsor

J.P. Morgan Equities (SA) Proprietary Limited

Joint sponsor

Tamela Holdings Proprietary Limited

Date: 27-02-2025 08:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.