...February 7, 2025 (Editor's note: This tear sheet originally misstated our forecast of 2024 EBITDA. The corrected version follows.) S&P Global Ratings expects the recently approved tariff increase for MTN Group Ltd. (MTN) in Nigeria and continuing robust growth in data and fintech across the group to aid EBITDA recovery in 2025 and 2026. The liberalization of the foreign exchange regime in June 2023 devalued the Nigerian naira, pushing the exchange rate against the U.S. dollar to about 1,485 in 2024 from about 472 at the start of the liberalization. As a result, MTN's performance has been adversely impacted by the rising cost of its dollar-denominated tower lease and elevated inflation. This has led to significant EBITDA margin erosion and a negative equity position for MTN Nigeria. To offset the increase in operational costs, MTN implemented group-wide cost saving measures (targeting savings of South Africa rand (ZAR) 7 billion ¡ ZAR 8 billion between 2024 and 2026) and successfully renegotiated...
