Johannesburg - MTN Group [JSE:MTN], South Africa's second-largest mobile phone company, fell short of expectations with a 2% rise in full-year profit on Wednesday, as foreign currency losses eroded profit from key markets like Iran.
MTN said headline earnings for the year to end-December came in at 1,089.1 cents from 1,068.6c in the previous year. Reuters StarMine estimates predicted a 14% jump to 1,218c.
The telecoms giant with business in 21 African and Middle Eastern countries increased subscribers by 15% to 189.3 million.
While still Africa's largest mobile firm by subscribers, MTN has recently been eclipsed in market value by Vodafone unit Vodacom Group [JSE:VOD].
Revenue rose nearly 11% to R135.1bn.
It declared a dividend of 503 cents, from 476 cents in the previous year and said it was changing its dividend policy, with an aim to increase dividends by as much as 15%.
The $36.6bn company said currency swings weighed on earnings, particularly the depreciation of the Syrian pound, Iranian rial and Sudanese pound.
The telecoms giant is facing a $4.2bn lawsuit in a US court for allegedly bribing officials to receive its Iranian licence, which had initially been awarded to rival Turkcell.
An MTN-sponsored investigation into the allegations dismissed the claims as "a fabric of lies, distortions and inventions", but the US legal proceedings are awaiting a verdict on whether the Washington court has jurisdiction over the issue.
Bigger rival Vodacom is scheduled to report its earnings on May 20.
MTN shares are flat this year, compared with a 3.6% increase by Johannesburg's Top 40 (Tradeable) [JSE:J200] index.