Lagos - Mobile telecommunications giant, MTN has said it
expects to report a loss in basic headline earnings per share and basic
earnings per share for Financial Year, 2016.
The expected decline in the headline earnings per share,
HEPS and earnings per share, EPS is mainly as a result of regulatory fine
imposed on MTN Nigeria in 2016.
MTN was fined $5.2 billion by the Federal Government of
Nigeria through the Nigerian Communications Commission (NCC) for not meeting
the deadline set up by the Mobile network operators (MNOs) for disconnecting
the Subscribers Identification Modules (SIM) with improper registration.
Reuters reports that the Nigerian fine is expected to have
an estimated negative impact of approximately 474 cents on HEPS and EPS,
Also read: MTN makes fresh attempt to reverse court order to forfeit N8b in assets
This is not good news
for MTN shareholders who will be faced with declining share values.
Recall that in
previous year comparable period, MTN reported HEPS of 1,204 cents and EPS of
The 2016 financial year results are further expected to be
negatively impacted by under-performance of MTN Nigeria and MTN South Africa in
first half of the year under review.For
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