November 13, (THEWILL) – South African telecom giant, Mobile Telecommunication Network (MTN), has disclosed an “orderly exit” of its operations in Guinea-Bissau, Guinea-Conakry and Liberia.
Although MTN currently has a presence in 19 countries in Africa and the Middle East, a report by Techcentral said the changes will reduce the tally to five operating countries in the group’s West and Central Africa (Weca) segment of its portfolio.
The company’s CEO, Ralph Mupita, hinted at signs of inflation and currency devaluation across several markets.
While reasons for the market exit have not been disclosed, MTN financial reports indicate its numerous challenges across the West and Central Africa region.
Its 2023 second-quarter financial report showed pre-tax profits falling a whopping 64%. MTN also suffered a foreign exchange loss of N131.4 billion, dragging its profits down, its cent to N44.6 billion.
This took its half-year profits to N200.3 billion compared to N268.6 billion same period in 2022
The Q2 report also revealed that “MTN recorded revenue of N590.6 billion, representing over 23.3 per cent, year-over-year (YoY); gross profit of N393.5 billion, representing over 22.9 per cent YoY and operating profits of N214.9 billion, representing 24.3 per cent YoY.
“Pre-tax profits of N44.6 billion; forex losses of N131.4 billion; finance cost of N182 billion, representing over 259 per cent YoY; total debts of N855 billion, compared to N689.6 billion, recorded in December 2022; net assets of N258.2 billion, compared to N355.6 billion, recorded in December 2022 and working capital of N588.7 billion.”
In its reaction, MTN said the Central Bank of Nigeria’s recent forex operations changes caused a significant 60 per cent movement in the exchange rate to N756.24 per dollar by the end of June 2023.