MTN profit slides as exchange rates hurt sales

MTN Group Ltd. shares fell the most in four months after Africa’s largest wireless carrier said first-half profit slid as much as 15% as exchange rates hurt sales.

The stock lost 4.8% to 202.85 rand at 9:54 a.m. in Johannesburg after dropping as much as 5.9%, the biggest intraday decline since March 23.

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The slide wiped more than R20 billion off MTN’s market value.

Earnings per share excluding one-time items declined to a range of 6.20 rand to 6.56 rand in the six months ended June 30, the Johannesburg-based company said Tuesday. Earnings were 7.29 rand a share a year earlier.

MTN generated about 27% of sales in South Africa during the previous fiscal year, with the rest coming from operations in other markets including Nigeria. The rand fell about 5% against the dollar in the first six months of 2015, according to data compiled by Bloomberg.

MTN’s stock has declined 8.2% this year, compared with a 10% gain by Vodacom Group Ltd., the market leader in South Africa.

- Bloomberg