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MTN's Nigerian woes hold back revenue growth

Johannesburg - Network service provider MTN says headwinds in Nigeria continue to hamper its revenue in the West African country as the company posted its quarterly update for the period ending September 30. 

MTN Nigeria reported a 1.2% decline in revenue during the period, following a 6.2% decline in the first quarter of 2016.

But the company said that despite the headwinds, its business performance in markets such as Nigeria is improving.

“After reporting a year-on-year decline in revenue in the first and second quarter of 2016 of 6.2% and 3.3% respectively, in the third quarter, MTN Nigeria’s revenue year-on-year decline was limited to 1.2% as the business continued to experience incremental improvements in revenues,” MTN Group executive chairman, Phuthuma Nhleko said.

MTN Group shares also took a knock recently after allegations that the company 'illegally' moved almost $14bn (R190bn) out of Nigeria since 2006.

READ: Nigerian fine, weak rand clobber MTN

MTN earlier this year agreed to pay a 330 billion naira ($1.1bn) fine in cash to the Nigerian government and list its local unit on the country’s stock exchange after about eight months of negotiations.

That penalty was imposed for missing a deadline to disconnect 5.1 million customers unregistered in the country, which is battling an Islamist insurgency.

“MTN Nigeria is committed to the payment of the N330bn fine related to the late disconnection of ‘improperly registered’ SIMS and as such has not declared a dividend since April 2015 and MTN Nigeria has no intention to make any dividend payments over the next six months,” Nhleko said in the latest statement.

READ: MTN 'moved' billions of dollars out of Nigeria - lawmaker

Data growth, capex increases

Meanwhile, across the MTN Group, the company's constant currency data revenue increased to 21.0% year-on-year and contributed 26.4% to their total revenue, while MTN posted a 1.8% and 142% increase for voice and data traffic, respectively.

Group capital expenditure (capex) increased 10.5% to R21.23bn with 2 669 3G and 1 995 4G sites added.

During the period under review, the South African business of the group saw an improvement in revenue of 3.6% quarter on quarter.

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