Shell Energy Entrepreneurs banner Yudala banner
MTN loses position as Africa’s highest-valued telecommunications operator

By News Express on 12/05/2016

Share on facebook Yahoo mail icon Gmail icon

Views: 1,532


MTN Group’s six-month battle with Nigerian authorities over payment of a record fine has cost the company its seven-year status as Africa’s highest-valued telecommunications operator, with that honour going to rival Vodacom.

MTN’s market capitalisation was R244bn at the market close in Johannesburg on Wednesday, trailing Vodacom’s R249bn.

This year marks the first time the rankings have been reversed since Vodacom, a unit of Newbury, England-based Vodafone, first sold shares in an initial public offering in 2009.

MTN’s shares have declined 31% since October 26, when the record $5.2bn Nigeria fine was made public.

While the penalty was later reduced to $3.9bn, the South African company has yet to agree to a payment.

CEO Sifiso Dabengwa resigned in November, to be replaced on a temporary basis by his predecessor, Phuthuma Nhleko.

Vodacom shares have gained 12% in the same period.

“The problem is all the uncertainties hanging over MTN’s head,” Vunani Securities telecommunications analyst Irnest Kaplan said.

“The market needs to know who the next CEO will be, but most importantly the market needs to be updated on the fine negotiations and if there has been any progress. Markets do not like uncertainty.”

Both MTN and Vodacom are relying on growth in smartphone use in international markets amid weaker sales in SA, where tighter regulation and competitive pricing have hurt both companies.

MTN, which had 229-million customers in 22 countries at the end of March, had revenue of R146bn and net income of about R20bn in 2015.

Vodacom probably generated R82bn in sales in the year to end-March, according to the average forecast of 14 analysts surveyed by Bloomberg, and net income of R13bn.

Vodacom reports full-year earnings on Monday.

Vodacom briefly overtook MTN for the first time on April 5, before MTN regained the top spot on April 8. Vodacom reclaimed the lead on May 6.

MTN shares declined 1.3% on Wednesday, their seventh fall in eight trading sessions. Vodacom rose 0.5%.

“I think Vodacom could be fully valued at current prices and MTN could be viewed as cheap,” said Peter Takaendesa, a money manager at Mergence Investment Managers in Cape Town.

“MTN’s earnings were double Vodacom’s, and I think the fine and management uncertainties are strongly playing into current evaluations.” (Bloomberg)

Source News Express

Posted 12/05/2016 1:45:55 PM

 

Share on facebook Yahoo mail icon Gmail icon


 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

 

You may also like...
NiMET forecasts rains today in Enugu, Ebonyi, Cross...

Buhari lobbies ECOWAS to back Adesina as AfDB...

Court stops monthly federal allocations to Osun LGs...

Man exchanges two siblings for bags of rice...

Man, 25, charged with assaulting 2 policemen in...

Nigerian Navy raids illegal refineries in Warri, dismisses...

Saraki alleges plot to unleash sponsored protests with...

How to be truly great (Part Two)

Intersociety calls for de-registration of APC •Says ruling...

Military keeps mum after 315 Nigerian troops flee...

Anambra Election Tribunal adopts Obidigbo’s letter of recognition...

Being strict affects children’s learning ability — Expert...

 

Latest News Man divorces wife after 44 years of marriage based on information received in his dream Rice farm: Bayelsa community disowns ex-militant leader, demands his arrest Gowon, others shun book launch in memory of Tafawa Balewa Restructuring: Urhobo seek return to Midwest Region Expert links bush burning to asthma, cancer, premature death 2019: Fani-Kayode lashes 7 Northern governors for mobilisng for Buhari’s re-election •Dismisses them as parasites, vampires Benue Killings: I never ignored Ortom’s warning — Osinbajo My 10-year ban from holding public office in Ekiti a big joke — Fayemi Kidnapped lawmaker found dead Kano commissioner, sons in police net over ‘stone devil Kwankwaso’ remark OBJ sets record as Open University graduates 14,769 Okah, other Kuje Maximum Prisons inmates in safe custody — Prisons Service

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (314,098 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (303,117 views) Shameless Genevieve Nnaji exposes breasts in public (243,386 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (200,767 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (189,528 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (178,772 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (155,023 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (138,948 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (135,746 views) Lagos plane crash: Journalist releases victims’ names (124,038 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (121,043 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (118,554 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (33) Business (2,848) Business Verdict (32) Columnists (790) Complaints & Requests (94) Enterprise & Opportunities (200) Entertainment (431) Features (541) Global Business Monitor (222) International (1,738) Interviews (139) Live Commentary (28) Love Matters (100) News (31,928) Opinion (864) Pidgin (10) Politics (4,349) Religion (666) Sports (1,405) Stock Watch (25) AMA & Al Jazeera Global Update

 

CBN Banner advert

CBN Words on marble

 

 

Thierry Henry in Lagos Nigeria

 

APO Group Partner

 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement



 

 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!