Share

Nigerian fine continues to weigh on MTN

Johannesburg - A Nigerian regulatory fine, foreign exchange losses and losing money from digital investments are key reasons behind MTN’s losses, the company said on Monday.

In an updated trading statement for its financial year ended December 31, MTN [JSE:MTN] said it expects to report a full-year basic headline loss per share of between 74 cents and 81 cents, as well as a basic loss per share of between R1.37 and R1.51.

In the previous comparable year, MTN reported a headline earnings per share of R7.46 and earnings per share of R11.09.

MTN said the full-year results, which are expected to be announced on March 2, were  impacted by the Nigerian regulatory fine, which had a 455 cents per share (cps) negative impact.

READ: MTN shares soar after it agrees to Nigeria fine payment

Last year, MTN agreed to pay 330 billion naira ($1.7 billion) in cash to the Nigerian government for failing to disconnect just over 5 million unregistered SIM cards in that country. MTN also committed to listing in Nigeria as part of the settlement deal.

The telecoms regulator in Nigeria first slapped its fine on MTN in October 2015, sparking a sell-off at the time in MTN shares.

Other factors impacting MTN’s full-year results are set to include:

-   Foreign exchange losses (324 cps);

-   The ‘interest unwind’ related to the Nigerian regulatory fine (45 cps);

-   The MTN Zakhele Futhi BBBBEE transaction charge (88 cps);

-   Professional fees related to the settlement of the Nigerian regulatory fine (73 cps);

-   Losses from investments in its Digital Group being mainly Africa Internet Holdings (AIH), Middle East Internet Holdings (MEIH) and Iran Internet Group (IIG) (39 cps);

-   Hyperinflation impact (37 cps); and-   Losses from the Nigeria Tower Company mainly as a result of foreign exchange losses on US dollar denominated loans (122 cps). MTN, though, said that following exchanging its interest in the Nigeria Tower Company for the increased stake in IHS Holding this investment will be shown as “an asset available for sale” in its results.

MTN shares in Johannesburg were down just over 0.6% to R118.06 in trade on Monday just after 11:20.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.99
-0.2%
Rand - Pound
24.10
+0.0%
Rand - Euro
20.60
-0.0%
Rand - Aus dollar
12.37
+0.4%
Rand - Yen
0.13
+0.6%
Platinum
902.70
+0.0%
Palladium
1,006.61
+0.0%
Gold
2,155.31
-0.2%
Silver
24.95
-0.4%
Brent Crude
86.89
+1.8%
Top 40
65,506
-1.1%
All Share
71,738
-1.0%
Resource 10
52,809
-1.0%
Industrial 25
99,128
-1.3%
Financial 15
16,499
-0.7%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders