Mobile phone operator MTN revealed on Tuesday that its profits for the six months to end-June 2016 will be negatively impacted by a massive fine imposed by the Nigerian authorities and under-performance of its South African operation. By Staff Writer
The cellphone giant said the Nigerian regulatory fine is expected to have an estimated negative impact of 474 cents on Headline earnings per share (HEPS), which is a main profit gauge in South Africa.
The company added that MTN Nigeria’s performance was impacted by the disconnection of 4,5 million subscribers in February 2016, the final batch of subscribers to be disconnected in compliance with the Nigerian Communications Commission subscriber registration requirements.
“The withdrawal of regulatory services which was re-instated on 15 March 2016 with approval for promotions and price plans granted in early May 2016 also negatively impacted MTN Nigeria’s performance,” the company informed investors on the JSE.
MTN added that its local operation was expected to report a decline in EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) margin, impacted by the marked increase in handsets sold during half-year 2016.
The company will report its financial figures for the six months to June 2016 on August 5.