BusinessDay.gif

 

 

MTN Group's Nigerian fine hurts full-year earnings

 

 

Staff Writer, Business Day, Johannesburg, 3 March 2016

 

MTN Group said on Thursday it expects its issues with Nigerian authorities
to be resolved soon.

 

The suspension of regulatory services in Nigeria has so far led to a more
than 50% decline in its earnings.

 

MTN Group reported a 51.4% plunge in headline earnings per share (HEPS) to
746c for the year to December 31 2015 compared with the year-earlier period.
Revenue was flat due to a decline in voice revenue in Nigeria and a
reduction in handset revenue in SA, the company said.

 

"Following the resumption of regulatory services we would anticipate an
improved operational performance in 2016. MTN Nigeria continues engaging
with the Nigerian authorities in an attempt to ensure an amicable
resolution. The fine imposed on MTN Nigeria and the related process
continues to receive extensive attention from the group board," the company
said.

 

The group declared a final dividend of 830c per share.

 

In SA, MTN said it had delivered encouraging results.

 

"A strong focus on customer experience, competitive offerings, aggressive
network roll-out and employee engagement resulted in a successful turnaround
in the second half of the year. The operation increased its subscriber base
by 9.3% to surpass 30-million customers."

 

MTN expects the economic climate in Nigeria to remain challenging. The group
said the positive trend evident in its South African operations during the
second half of its 2015 financial year was likely to continue.

 

"While the group operates across 22 countries, the earnings remain highly
concentrated in a few markets, with the associated volatility and risks as
evident over the past few years. To this end, management will continue to
explore opportunities to address this over the medium term," it said.

 

 

From:
http://www.bdlive.co.za/business/technology/2016/03/03/mtn-groups-nigerian-f
ine-hurts-full-year-earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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