Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


MTN shares nosedive on profit warning

19 July 2016, 12:58Gareth van Zyl, Fin24

Johannesburg - Nigeria’s mega fine on mobile network MTN [JSE:MTN] is still weighing on the company as it warned of forthcoming losses on Tuesday.

MTN told shareholders on Tuesday that it “expects to report negative basic headline earnings per share (HEPS) and basic earnings per share (EPS)” for the six months ended June 30.

For the previous comparable period, MTN reported HEPS of 654 cents and EPS of 653 cents.

The fall in earnings comes amid MTN having agreed to pay a 330 billion naira (R24.94bn) fine to the Nigerian government for its failure to register five million subscribers.

Amid the warning on Tuesday, MTN shares fell over 2% to R137.80 at 09:49 in Johannesburg.

“The expected decline in the HEPS and EPS is primarily as a result of the Regulatory fine imposed on MTN Nigeria (‘the Nigerian regulatory fine’) following a resolution with the Federal Government of Nigeria on 10 June 2016,” said MTN.

“The Nigerian regulatory fine is expected to have an estimated negative impact of 474 cents on HEPS and EPS, respectively,” said MTN.

MTN further said that it’s been hit by “foreign exchange losses in a number of operations, losses from joint ventures and associates and hyperinflation adjustments on MTN Irancell”.

Meanwhile, under-performances in MTN’s Nigeria and South African markets are also set to weigh down Africa’s biggest mobile network.

“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,” said MTN.

“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,” added MTN.

Regarding its South African operations, MTN said a “decline in the Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) margin, impacted by the marked increase in handsets sold during HY2016”.

- Fin24


Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...