We Had a Full Year Loss, Because of NCC-MTN

Telecoms giant, MTN has announced that they are expecting to report a full-year loss because of the n330 billion regulation fine imposed on them by the Nigerian Communications (NCC).

 In a statement released on Wednesday, MTN said the fine took 4.74 rand from full-year earnings per share.

 The fine of n330 billion was imposed on MTN for failure to disconnect unregistered SIM cards.

“The performance in Nigeria was hurt by the forced disconnection of 4.5 million customers by the government a year ago, regulatory penalties and the weakness of the naira against the dollar. In South Africa, lower demand for mobile contracts weighed on earnings”, MTN said.

“Together, those factors wiped out all of MTN’s 2016 earnings, after the company reported profit of 7.46 rand per share in 2015.”

Since the beginning of 2017, MTN shares have lost 10%, bringing the company’s value to 214 billion rand ($15.8 billion) while Vodacom group Ltd, a rival in South Africa, is valued at about 222 billion rand.