Fidelity bank card banner Camano banner
MTN shares plunge at the opening after profit warning

By News Express on 20/02/2016

Views: 2,269

Shares in MTN Group, Africa’s biggest cellphone operator, fell sharply at the opening on Friday, following Thursday’s profit warning.

The shares fell as much as 13% in early trade and were quoted 12% weaker at R135 at 9.24am.

MTN said on Thursday that it expected headline earnings per share to fall about 20% for the year to December, due to a poor performance in Nigeria.

MTN faces a $3.9bn fine from Nigerian regulators for missing the deadline to disconnect 5.1-million subscribers who were not registered as required by the law. The group is seeking an out-of-court settlement.

Nigeria accounts for 37% of MTN’s revenue. Last month MTN Nigeria confirmed it would report profit of about $995m — a fraction of even the reduced fine. The fine initially was $5.2bn but was reduced by 25%. MTN Nigeria CEO Ferdi Moolman said at the time that the reduced fine could bankrupt the company, as it represented 95% of its annual turnover

The fine is also more than twice the group’s annual average capital spending over the past five years.

MTN said, given the discussions, “There remains some uncertainty as to the final quantum of the Nigerian fine, should an out-of-court settlement be reached.”

It would issue a further trading statement “as soon as there is a reasonable degree of certainty" about the likely effect of the Nigerian troubles on its earnings. (BusinessDAY South Africa)


Source News Express

Posted 20/02/2016 12:20:24 AM





You may also like...
My life in danger — Rivers AAC governorship...

Lagos agog for THE EXPERIENCE 2013

BREAKING: End of the road for kidnap kingpin...

South Africa drops visa rules to boost tourism...

No plan to leave PDP despite loss of...

8 Southern Kaduna districts sign peace deal

Ekwueme was the stabilising factor in Nigeria’s politics,...

Okowa will be re-elected Delta State Governor in...

Protests erupt in Chicago after black man fatally...

Buhari moves to fast-track NNPC reforms, plans Inter-Ministerial...

5 in police net for raping ‘mentally unstable’...

Abians celebrate Oshiomhole, salute Edo opposition


Latest News BREAKING: Algeria stun Senegal, win 2019 AFCON Special Forces eliminate Boko Haram fighters in commando style, nab 6 terrorist Commanders Four policemen dismissed for alleged cover-up Passengers panic as man climbs departing aircraft at Lagos Airport Nigeria, 3 others launch $100m anti-Boko Haram fund Okorocha warns Ihedioha over N100bn claim One dead, six missing after attack on aid workers in Borno Why Bayelsa with 8, Kano 44 LGs have equal senators – Buhari Fake beggars nabbed and paraded in Anambra CBN to partner state governments on livestock, dairy production Don’t let El-Zakzaky, Dasuki die in detention, HURIWA pleads with world leaders •Blasts IGP for restricting public protests Gbajabiamila has schemed my people out of his appointments, Ebonyi APC chieftain cries out


Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (509,909 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (431,525 views) Shameless Genevieve Nnaji exposes breasts in public (373,467 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (316,727 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (282,468 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (247,201 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (239,258 views) 10 cars more expensive than Jets (223,726 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (221,223 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (208,778 views) Lagos plane crash: Journalist releases victims’ names (188,358 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (186,982 views)


NLNG Job Vacancy

CBN banner advert

UBA Wise Savers Promo


Categories Advertorials (3) African Press Organisation (81) Art & Literature (97) Business & Economy (4,357) Business Verdict (76) Columnists (1,074) Complaints & Requests (95) Enterprise & Opportunities (211) Entertainment (635) Features (779) Global Business Monitor (396) ICT Monitor (53) International (3,723) Interview (192) Live Commentary (30) Love Matters (163) Maggie's Blog (342) News (48,821) Opinion (1,291) Pidgin (17) Politics (11,169) Religion (1,051) Sports (2,102) Stock Watch (39) AMA & Al Jazeera Global Update






APO Group Partner




GOCOP Accredited Member

GOCOP Accredited member



Africa Media Agency and Al Jazeera