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Sun Jul 24 14:54:24 CAT 2016

Profit plunges 51% as MTN sets R9.29 billion aside for Nigeria fine

Gareth van Zyl | 03 March, 2016 08:27
Motorists drive under a MTN billboard on the Lagos-Ibadan expressway. File photo.
Image by: AFP

Africa’s biggest mobile network MTN Group  has recorded a 51% drop in full year profit as the company has set aside R9.29 billion for its record multi-billion Nigerian fine.

MTN, in its annual financial 2015 results announcement on Thursday morning, said that its reported basic headline earnings per share (HEPS) declined by 51.4% to 746 cents.

The company said this drop was “largely a result of the Nigerian regulatory fine provision (R9.29 billion), which had a 402 cents negative impact on HEPS”.

Late last year, Nigerian regulators fined MTN $3.9 billion for failing to disconnect 5.2 million unregistered subscribers. MTN, last month, also dropped a Nigerian court challenge of the fine as the company made a R3.8 billion ‘good faith payment’ to Nigeria in a bid to reach a settlement.

Other results from the company indicated that its revenue increased 0.1% to R146.35 billion and that the group’s total subscriber base increased 4.1% to 232.5 million.

The group’s earnings before interest, tax, depreciation and amortisation (Ebitda) decreased 8.6% to R59.92 billion.

The company, though, still announced a final dividend of 830 cents per share, with total dividend of 1 310 cents per share.

MTN operates across 22 countries in Africa and the Middle East.

Source: Fin24

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