An MTN starter kit pack on display on a table at a retail stand in Abuja, Nigeria. REUTERS/Afolabi Sotunde
An MTN starter kit pack on display on a table at a retail stand in Abuja, Nigeria. REUTERS/Afolabi Sotunde

Nigeria hits MTN earnings, to fall at least 20%. “Uncertainty over $3.9bn fine”

MTN Group said 2015 earnings fell at least 20 percent due to a weak performance in Nigeria, where it’s in locked in talks with regulators over the settlement of a record $3.9 billion fine.
Published on

By Loni Prinsloo

(Bloomberg) — MTN Group Ltd., Africa's biggest mobile- phone company, said 2015 earnings fell at least 20 percent due to a weak performance in Nigeria, where it's in locked in talks with regulators over the settlement of a record $3.9 billion fine.

An MTN starter kit pack on display on a table at a retail stand in Abuja, Nigeria. REUTERS/Afolabi Sotunde
An MTN starter kit pack on display on a table at a retail stand in Abuja, Nigeria. REUTERS/Afolabi Sotunde

Earnings were hit by "operational underperformance in Nigeria" as the country's regulator withheld services and ordered MTN disconnect unregistered subscribers, the Johannesburg-based company said in a statement after the market closed on Thursday. Basic earnings per share excluding one-time items were at least 3.07 rand lower than the 15.36 rand reported in 2014, MTN said.

MTN said "there remains some uncertainty" surrounding the outcome of talks with Nigerian regulators about the fine, imposed last year for missing a deadline to disconnect 5.1 million unregistered subscribers. The penalty was reduced from the original $5.1 billion in December, and a Lagos court last month adjourned a hearing called by MTN so the two sides could reach a settlement out of court.

MTN shares gained 1.1 percent to 153.70 rand at the close in Johannesburg, a fifth consecutive day of rises, valuing the company at 284 billion rand ($18.6 billion). The stock is still 19 percent down since the fine imposed by the Nigerian Communications Authority was first made public on Oct. 26.

Nigeria is MTN's biggest market with 63 million customers. The company has a total of 233 million subscribers across Africa and the Middle East.

Related Stories

No stories found.
BizNews
www.biznews.com