By Michael Susin

MTN Group backed its medium-term targets despite warning of increased headwinds after a sharp drop in earnings.

The South Africa-based telecommunications group said Monday that it expects service revenue percentage growth for the medium term to be at least in the mid-teens in constant currency terms.

However, it said elevated volatility increased headwinds and added material uncertainty to the outlook.

MTN reported an increase in service revenue for 2023 to 210.1 billion South African rand ($11.06 billion) from ZAR196.5 billion a year ago.

Earnings before interest, taxes, depreciation and amortization slightly fell to ZAR90.5 billion from ZAR90.8 billion, mainly due to higher inflation and the effects of foreign-currency devaluations.

Basic earnings per share slumped to ZAR2.27 from ZAR10.54, and headline EPS dropped to ZAR3.15 from ZAR11.37.

The board declared a final dividend of ZAR3.30, flat on a year ago.

Write to Michael Susin at

(END) Dow Jones Newswires

03-25-24 0226ET