MTN to re­turn to profit af­ter first an­nual loss due to Nige­ria fine

Financial Nigeria Magazine - - Finance -

MTN, Africa's largest mobile op­er­a­tor, said it ex­pects to re­turn to profit in the 2017 half-year af­ter the com­pany suf­fered its first an­nual loss last year due to the pay­ment of a reg­u­la­tory fine in Nige­ria.

The Johannesburg-based com­pany said it ex­pects 2017 half-year head­line earn­ings per share (HEPS) to be be­tween 210 cents and 230 cents, com­pared with a head­line loss per share of 271 cents in the sim­i­lar pe­riod last year. (HEPS is South Africa's main profit mea­sure, which strips off one­off items).

“The neg­a­tive per­for­mance in the prior com­pa­ra­ble pe­riod was mainly as a re­sult of non-re­cur­ring costs, in­clud­ing the Nige­ria reg­u­la­tory fine of 474 cents per share which was fully ex­pensed in prior pe­ri­ods,” the com­pany said.

In June last year, MTN reached a deal with Nige­rian au­thor­i­ties to pay N330 bil­lion over three years to set­tle the reg­u­la­tory fine im­posed on its Nige­rian unit for fail­ing to dis­con­nect five mil­lion un­reg­is­tered SIM cards. As part of the deal, MTN also agreed to list MTN Nige­ria on the Lagos bourse, sub­ject to mar­ket con­di­tions.

Phuthuma Nh­leko, Ex­ec­u­tive Chair­man, MTN Group

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