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MTN Adds 7.7m New Subscribers, Posts First Yearly Loss In Two Decades

by Abbey Lily
MTN Adds 7.7m New Subscribers, Posts First Yearly Loss In Two Decades
MTN Adds 7.7m New Subscribers, Posts First Yearly Loss In Two Decades

MTN Adds 7.7m New Subscribers, Posts First Yearly Loss In Two Decades

MTN Adds 7.7m New Subscribers, Posts First Yearly Loss In Two Decades
 
TELECOMMUNICATIONS firm, MTN has recorded its first yearly loss in 20 years.
  According to the financial statement released to shareholders in Johannesburg,  South Africa, yesterday, MTN said it made a $200 million loss in 2016, which is  the company’s first,  after suffering a huge fine in Nigeria and currency challenges in key markets.
  “MTN Group’s financial results for 2016 reflect the most challenging year in the company’s 22-year history,” MTN stated.
  The firm, which has over 240 million customers, controls about 40 per cent market share in Nigeria and services about 60 million subscribers. Nigeria is MTN’s biggest market.
  South African telecoms giant MTN said Thursday that it made a $200 million loss in 2016 — the company’s first — after suffering a huge fine in Nigeria and currency challenges in key markets.
  Johannesburg-based MTN reported profits of 20.2 billion rand ($1.6 billion) before tax for 2015.
The telecommunications firm was fined by the Nigerian authority in October of 2015 for contravening regulatory order on registration of SIM cards.
  MTN agreed to pay a fine of N330 billion ($1.1 billion), reduced from $5.2 billion, in June last year after a prolonged legal battle to end a dispute in Nigeria over missing a deadline to cut off unregistered SIM cards.
  The fine by Nigeria, MTN’s most lucrative but increasingly problematic market, wiped 10.5 billion rand ($768 million) – 500 cents per share – from the firms 2016 headline earnings, South Africa’s main measure of profit.
  But Reuters reported that MTN shares rose nearly 10 per cent after it said it would pay a total dividend of 700 cents a share despite the loss, compared with 1,310 in 2015.
  MTN also said it expects to keep it at 700 cents in 2017.
   MTN woes in Africa’s most populous nation and biggest economy still persist, with the company facing an investigation by Nigerian lawmakers for allegedly illegally repatriating $14 billion between 2006 and 2016.
  MTN has denied any wrongdoing.
The firm’s operations in South Africa were also hit by technical issues and customer service problems during the year, which also hurt the bottom line, the company said.
  The firm however, said its total subscribers increased by 3.3 per cent or 7.7 million to 240 million in the year to end-December.
 

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