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...

Latest Posts

Uber Eats Releases South Africa’s Most Loved Traditional Orders

The term local is lekker always rings true in a country as diverse as South Africa, where one is always guaranteed a taste extravaganza....

2021 BMW M3 Competition Sedan and M4 Competition Coupe Revealed

BMW has finally revealed its new M3 and M4 Coupe models that are likely to launch locally towards the middle of 2021. South Africans are...

Cape Town Municipal Tribunal Gives Go-Ahead To Mega-Development at Two Rivers Urban Park

A city tribunal has made way for Amazon to move in to River Club mega-development in Cape Town. The rezoning was decided in...

MTN Launches Play Lotto Feature on MoMo App

MTN’s mobile money solution, MoMo, now features Play Lotto functionality, offering MoMo users a free-to-play, safe and convenient way to try their luck at...

Profits ‘hammered’ at MTN

 

MTN, which is embroiled in a R59 billion fine imposed by the Nigerian watchdog, is expected to report a 20% reduction in basic headline earnings per share (HEPS) for the full-year to end-December 2015. By Gugu Lourie


HEPS – South Africa’s main profit gauge – at MTN, Africa and Middle East biggest mobile phone operator, have shrank on the back of under-performance of its biggest operation, MTN Nigeria.

“The negative earnings performance has been impacted by a number of factors with the operational underperformance in Nigeria, resulting from the subscriber disconnections and the withholding of regulatory services, being a key contributor to this,” the mobile phone giant informed investors on Thursday afternoon.

The company, which will report its earnings on March 3, said 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.

The expected decrease in earnings for MTN will exclude the proposed R59 billion fine by the Nigerian communications watchdog.

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”.

“Given the ongoing discussions taking place with the Nigerian authorities, there remains some uncertainty as to the final quantum of the Nigerian fine, should an out of court settlement be reached,”  MTN said on Thursday.

In January, MTN’s Nigeria CEO Ferdi Moolman told the media that the $3.9 billion (R59 billion) fine imposed on MTN Nigeria by the Nigerian Communications Commission (NCC) could bankrupt the mobile phone operator as it represents 95% of its annual turnover.

Moolman noted that though the fine was harsh on the mobile operator but said MTN has learnt its lessons from it and would work to restore relationship with the regulator, stakeholders and its customers.

Latest Posts

Uber Eats Releases South Africa’s Most Loved Traditional Orders

The term local is lekker always rings true in a country as diverse as South Africa, where one is always guaranteed a taste extravaganza....

2021 BMW M3 Competition Sedan and M4 Competition Coupe Revealed

BMW has finally revealed its new M3 and M4 Coupe models that are likely to launch locally towards the middle of 2021. South Africans are...

Cape Town Municipal Tribunal Gives Go-Ahead To Mega-Development at Two Rivers Urban Park

A city tribunal has made way for Amazon to move in to River Club mega-development in Cape Town. The rezoning was decided in...

MTN Launches Play Lotto Feature on MoMo App

MTN’s mobile money solution, MoMo, now features Play Lotto functionality, offering MoMo users a free-to-play, safe and convenient way to try their luck at...

Don't Miss

Union Asks If Blue Label Telecoms Is Using Cell C as a ‘Piggy Bank’

The Information Communication Technology Union (ICTU) wants Blue Label Telecoms to explain how the JSE-listed company can zero rate its stake in Cell C...

Workers at Cell C Want Investec to Explain ‘Sudden Devaluing’ of their Share Scheme

The Information Communication Technology Union (ICTU) has asked Investec to explain the ‘devaluing’ of the "Believe Phantom Option Shares Scheme (Believe Share Scheme)" awarded to Cell...

Spotify’s Discover Weekly Playlists Now Sponsored by Telkom South Africa

Global streaming service Spotify is announcing Telkom South Africa as the first local sponsor of the Discover Weekly playlists for South African users. These sponsorship...

Schneider Hosts a Global Student Competition Called Go Green

Every year Schneider Electric, the leader in digital transformation of energy management and automation, hosts a global student competition called Schneider Go Green. Students...

Hundreds of Free Fully Accredited Data science learnerships up for grabs

Registrations open today for EXPLORE Data Science Academy’s (EDSA) 2021 intake of its 12-month fully-sponsored data science learnerships, starting January 11, 2021. For hundreds of successful...

Stay in touch

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