MTN Slumps To Loss On Record Nigeria Fine Due To Weak Currencies


MTN Group Ltd. said a first half loss per share would be as much as 3.15 rand as Africa’s biggest mobile phone company agreed to settle a record fine in Nigeria and was hurt by weaker operating currencies against the dollar.

The loss per share will be between 2.85 rand and 3.15 rand in the six months through June, the Johannesburg based company said in a statement on Thursday. The headline loss per share will be between 2.55 rand and 2.85 rand.

MTN agreed to pay a record 330 billion naira ($1 billion) fine in Nigeria in June after missing a deadline last year to disconnect unregistered subscribers. The loss of customers in its biggest market further hurt operations in the country, while the South African business is expected to report a decline in earnings before interest, taxes, depreciation and amortization margin for the half-year period.

Losses from both mobile phone towers and digital businesses also contributed to the first half loss, MTN said.

The shares lost as much as a third of their value after the fine was levied in October and are still 31 percent below their level when the penalty was announced.

Previous ArticleNext Article

Leave a Reply

Your email address will not be published. Required fields are marked *