NLNG Corporate Caring banner FirstGem 3rd anniversay lecture Fidelity bank card banner Emerald Energy Institute Camano banner

MTN loses position as Africa’s highest-valued telecommunications operator

By News Express on 12/05/2016

Gmail icon

Views: 2,197


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

 

 

CLASSIFIED ADS

 

You may also like...
Northern governors meet over Shi’ite/Army clash, moves to...

I FORESEE A REVOLUTION SOON IN NIGERIA —ex-Gov’nor...

Anambra Judicial Commission calls for the scrapping of...

FG to review petrol price template

Nigeria in serious trouble (Why the youths may...

Why teenage pregnancy rampant in Karu (Abuja) –...

Lagos to acquire surveillance aircraft for creeks

6-year-old Boko Haram victim survives spinal cord surgery...

Ohanaeze demands regional govt., 6-year single term presidency,...

Creditors drag Nitel/Mtel liquidator to FRCN, Presidential Committee...

American troops spot Boko Haram insurgents inside Sambisa...

Female suicide bomber hits Yobe bus station •Boko...

 

Latest News Kidnappers abduct Police DPO, demand N50m ransom Varsity student in viral sex video expelled Kogi West: Melaye storms INEC office with 21 video clips; demands cancellation Teenager in court for allegedly kidnapping minor Sex position, duration don’t determine child’s gender - Expert Controversial oil deal: Adoke's lawyer confirms arrest in Dubai Police recruitment: Court fixes date to give verdict on PSC suit Illegal refineries discovered in Kano Many injured as NURTW, RTEAN clash in Lagos Suspected Boko Haram fighters burn down health centre in Yobe Five policemen collected N700,000 from me via POS - Victim Seven men of Nigerian origin arrested for romance scam in US

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (564,123 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (452,918 views) Shameless Genevieve Nnaji exposes breasts in public (402,220 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (336,704 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (304,243 views) 10 cars more expensive than Jets (282,837 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (259,280 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (257,490 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (239,023 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (225,434 views) Lagos plane crash: Journalist releases victims’ names (201,835 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (198,490 views)

 

CBN milk production

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (110) Business & Economy (4,579) Business Verdict (87) Columnists (1,145) Complaints & Requests (97) Enterprise & Opportunities (219) Entertainment (706) Features (845) Global Business Monitor (493) ICT Monitor (68) International (4,224) Interview (211) Live Commentary (30) Love Matters (176) Maggie's Blog (490) News (54,190) Opinion (1,422) Pidgin (17) Politics (11,778) Religion (1,122) Sports (2,229) Stock Watch (40) AMA & Al Jazeera Global Update

 

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera