MTN Group’s senior leadership, including CEO Ralph Mupita, accepted significant salary reductions in 2024 after the telecommunications conglomerate reported a $592 million annual loss.
The financial downturn, driven by currency instability in Nigeria, inflationary pressures in Ghana, and operational disruptions from Sudan’s conflict, prompted the board to adjust executive compensation in line with performance metrics.
Mupita’s total remuneration fell 19.4% to R65 million ($3.5 million), largely due to reduced long-term incentives, though his short-term bonuses nearly doubled. The steepest cut affected Ebenezer Twum Asante, Senior Vice President for Markets, whose pay dropped 25% to R37.8 million ($2 million). MTN Nigeria CEO Karl Toriola and MTN South Africa’s Charles Molasipi saw decreases of 13.2% and 2%, respectively. Group CFO Tsholofelo Molefe was the sole top executive to receive a raise, with a 14.1% increase attributed to higher short-term incentives.
The loss stemmed primarily from Nigeria’s naira devaluation, which eroded earnings in MTN’s largest market, alongside inflation surges in Ghana and halted operations in Sudan. Despite these challenges, MTN expanded its customer base to 291 million and reported a 10.2% rise in EBITDA on a currency-adjusted basis, though reported EBITDA declined 33%. Service revenue fell 5.4% to R177.8 billion, with data revenue down 12.3%.
Ghana emerged as a rare bright spot, contributing R25.2 billion to service revenue a 34.2% annual increase fueled by a 39.6% jump in data and mobile money income. However, basic earnings per share plummeted to a loss of 531 cents, while headline earnings dropped 68.9%. Defying the red ink, MTN raised its dividend by 4.5% to 345 cents per share, drawing from reserves to maintain shareholder returns.
The pay cuts reflect MTN’s adherence to performance-linked remuneration policies amid economic volatility. The dividend hike, however, signals confidence in long-term recovery, even as the company navigates currency risks and geopolitical uncertainties.
MTN’s mixed results underscore broader challenges facing multinationals in Africa, where fluctuating exchange rates and regional instability continue to test resilience. The telecom giant’s balancing act between austerity and investor rewards highlights the complex realities of operating in emerging markets, where short-term setbacks often coexist with strategic growth opportunities.
