MTN Full-Year Profit Plunges On Nigeria Fine

Johannesburg – Africa’s biggest mobile network MTN Group  [JSE:MTN] has recorded a 51% drop in full year profit as the company has set aside R9.29bn 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 (R9.29bn), which had a 402 cents negative impact on HEPS”.

Late last year, Nigerian regulators fined MTN $3.9bn 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 R3.8bn ‘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 R146.35bn 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 R59.92bn.

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.

 

News24