The South African company previously had high hopes for Iran and was embarking on a $750 million plan to extend fibre-to-home broadband connections to the country's cities. But that project was put on hold after US President Donald Trump decided to reimpose an embargo on energy and financial sectors, people familiar with the matter said last month.
"We have discounted any cash flows from Iran for the next three years," Chief Financial Officer Ralph Mupita said at a presentation in Johannesburg.
Net debt increased to R69.8 billion ($5.2 billion) as of the end of June, compared with R57.1 billion at the end of 2017, Johannesburg-based MTN said in a statement Wednesday. That was partly caused by a higher final dividend paid last year, although that will be lower in 2018 in line with a new policy outlined in March.
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The shares fell 4.6 percent as of 10:14 a.m. in Johannesburg, the most since Feb. 6, extending a decline for the year to 20 percent.
"The debt levels are high," Peter Takaendesa, an analyst at Mergence Investment Managers, said by phone from Cape Town. "I hope they will address that with the 260 million euros ($302 million) they made from Cyprus," he added, referring to the recent disposal of MTN's only business in the European Union.