Africa’s biggest mobile network MTN Group has recorded a 51% drop in full
year profit as the company has set aside R9.29bn for its record multi-billion
Nigerian fine.
MTN, in its annual financial 2015 results
announcement on Thursday morning, said that its reported basic headline
earnings per share (HEPS) declined by 51.4% to 746 cents.
The company said this drop was “largely a result of
the Nigerian regulatory fine provision (R9.29bn), which had a 402 cents
negative impact on HEPS”.
Late last year, Nigerian regulators fined MTN $3.9bn
for failing to disconnect 5.2 million unregistered subscribers. MTN, last
month, also dropped a Nigerian court challenge of the fine as the company made
a R3.8bn ‘good faith payment’ to Nigeria in a bid to reach a settlement.
Other results from the company indicated that its
revenue increased 0.1% to R146.35bn and that the group’s total subscriber base
increased 4.1% to 232.5 million.
The group’s earnings before interest, tax,
depreciation and amortisation (Ebitda) decreased 8.6% to R59.92bn.
The company, though, still announced a final
dividend of 830 cents per share, with total dividend of 1 310 cents per share.
MTN operates across 22 countries in Africa and the
Middle East.
Source: Fin24
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