How SA’s Competition Watchdog Plans to Regulate Digital Economy?

The arrival and rapid rise of the digital economy presents South Africa with an opportunity to reverse the pervasive, triple scourge of unemployment, inequality...

Latest Posts

Why the South African Poker Scene is Thriving

At around 18 million visitors every year, South Africa is the second most popular tourist destination on the continent, second only to Morocco. Visitors...

Why You Should Learn Information and Technology in University

Nowadays, there are a lot of universities that prepare program graduates for Bachelor of Science in Information and Technology to find careers in the...

Student Accommodation With Facial Recognition Biometric Systems

In an industry plagued with mediocrity, Brooklyn House delivers a world-class living experience to a thriving university campus.  It’s the first instalment of University...

Nigeria’s RxAll Secures Funding To Expand its Technology That Fights Fake Medicine

Founders Factory Africa (FFA) announced today that it has selected RxAll, an AI-hyperspectral platform for authenticating drugs,  into its venture scale programme. Launched in...

MTN Zakhele tracks MTN shares lower

 

MTN was under pressure again on Friday as Africa and Middle East’s largest mobile phone operator predicted on Thursday afternoon a 20% drop in headline earnings per share (HEPS) for the year to end-December 2015. MTN Zakhele, the Black Economic Empowerment (BEE) scheme of MTN listed on the JSE BEE board, was no exception as it dropped 12.7% at R65.93 by 11:35am on Friday, valuing the counter at more than R6 billion. By Gugu Lourie


Shares in MTN were trading 18.5% lower at R125.31 by 11:35am, valuing the telco giant at more than R283 billion.

This was after the South African-based telco announced on Thursday that its HEPS will be reduced to 307 cents for the year ended 31 December 2015 compared to 1 536 cents in the year to end 2014. HEPS is South Africa’s main profit gauge.

The company said the expected decrease in earnings will exclude the proposed R59 billion fine imposed by the Nigerian communications watchdog.

It attributed the negative earnings performance to operational underperformance in Nigeria, resulting from the subscriber disconnections and the withholding of regulatory services.

MTN was given a December 31 deadline to pay the fine for its failure to disconnect 5.2 million subscribers who did not register their SIM cards. The payment deadline has expired.

The South African-based telco has hired seven Senior Advocates of Nigeria (SAN) to fight the fine in the Federal High Court in Lagos. The initial fine was $5.2 billion and was in December reduced to $3.9 billion.

The hearings of the dispute were expected before the Federal High Court in Lagos, Nigeria on 22 January 2016.

However, MTN informed investors on the same day that the judge adjourned the matter to 18 March 2016 in order to “enable the parties to try and settle the matter. If the parties are unable to reach a settlement the matter will then proceed on that date”.

Established in 2010, MTN Zakhele is a vehicle for previously disadvantaged South Africans to invest in MTN Group.

MTN Zakhele was transferred from the over-the-counter (OTC) to the JSE’s BEE board from November 5.

On listing the MTN Zakhele shares followed MTN lower, dropping from R14 billion to R11.4 billion.

MTN Zakhele has risen 7.86% in the past 7 days and 16.1% in the past 90 days.

 

 

Latest Posts

Why the South African Poker Scene is Thriving

At around 18 million visitors every year, South Africa is the second most popular tourist destination on the continent, second only to Morocco. Visitors...

Why You Should Learn Information and Technology in University

Nowadays, there are a lot of universities that prepare program graduates for Bachelor of Science in Information and Technology to find careers in the...

Student Accommodation With Facial Recognition Biometric Systems

In an industry plagued with mediocrity, Brooklyn House delivers a world-class living experience to a thriving university campus.  It’s the first instalment of University...

Nigeria’s RxAll Secures Funding To Expand its Technology That Fights Fake Medicine

Founders Factory Africa (FFA) announced today that it has selected RxAll, an AI-hyperspectral platform for authenticating drugs,  into its venture scale programme. Launched in...

Don't Miss

MTN MoMo Launches Additional Services To Help SA During Challenging Times

MTN’s Mobile Money solution, MoMo, has launched some new functionalities aimed at assisting South Africans during challenging economic times. These include the new food...

Audi and Wayde van Niekerk Release an Inspiring #Lane8 Campaign

Audi has utilised its brand partnership with South African Olympic runner and world record holder, Wayde van Niekerk, in a brand campaign which is...

Ozow Zero-Rates Data Costs to Ensure South Africans Can Access Digital Payments

Digital payments company Ozow, has launched the Ozow Revolution. According to the company, the Ozow Revolution is a visionary effort to make digital payments available...

Top 12 Students Chosen To Represent SA in Huawei’s ICT Competition

Huawei South Africa has announced the winning teams and individuals from the SA national finals round of its Global ICT Competition at an online...

Telkom Taps Ex-MTN Executive and Openserve Boss as Board Members

Telkom has announced the appointment of new board members after the retirement of independent non-executive directors Santie Botha and Khanyisile Kweyama. Botha and Kweyama will...

Stay in touch

To be updated with all the latest news, offers and special announcements.