MTN Nigeria to report $955m annual profit. (24% of $3.9bn fine)

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JOHANNESBURG, Jan 19 (Reuters) – South African telecoms group MTN said on Tuesday its Nigerian business is likely to report about $955 million in annual profit after tax, confirming a newspaper report in the west African country.

“Profit after tax figure for MTN Nigeria for the period ended 31 December 2015 being quoted in the press article, is 190 billion naira ($955 million), which is within the current estimate,” the company said in a statement.

Customers register their MTN Group Ltd. mobile phone sim cards at a roadside kiosk in Lagos, Nigeria, on Saturday, Oct. 31, 2015. MTN, Africa's largest wireless operator, remains in negotiations with Nigerian regulators over a $3.9 billion fine for failing to comply with an order to disconnect customers with unregistered phone cards, according to a person familiar with the matter. Photographer: George Osodi/Bloomberg
Customers register their MTN Group Ltd. mobile phone sim cards at a roadside kiosk in Lagos, Nigeria, on Saturday, Oct. 31, 2015. MTN, Africa’s largest wireless operator, remains in negotiations with Nigerian regulators over a $3.9 billion fine for failing to comply with an order to disconnect customers with unregistered phone cards, according to a person familiar with the matter. Photographer: George Osodi/Bloomberg

Africa’s largest mobile operator has been fined $3.9 billion in Nigeria for failing to disconnect users of unregistered SIM cards.

MTN, which makes about 37 percent of its revenue from Nigeria, has filed a court challenge over the fine, which equates to more than twice its annual average capital spending over the past five years.

Shares in MTN were up 0.8 percent at 121.50 rand by 1006 GMT, lagging a 1.4 percent rise in the JSE Top-40 index.

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