MTN results impacted by fine settlement in Nigeria

Despite challenges MTN declared an interim dividend of 250 cents for the period
MTN Headquarters in South Africa (Source- Getty images)
MTN Headquarters in South Africa (Source- Getty images)

Share

Nigeria fine settlement exerted a significant negative impact on results of the MTN group for the six months ended June 30, 2016. Consolidated revenues increased by 14.0% year-on-year to ZAR78.878 billion ($5.736 billion), including data revenue which grew by 32.2%. 

Following the final settlement of regulatory fine between MTN and the Federal Government of Nigeria, MTN has to pay 330 billion naira ($1.67 billion) over three years in full and final settlement. In June 2016, the first schedule of 30 billion naira ($124 million) has been paid.

Subscriber base remained flat at 232.6 million. There have been 7.5 million subscriber disconnections in Nigeria, Uganda and Cameroon to ensure regulatory compliance, (approximately 18 million since October 2015). Moreover, competition and economic pressure in South Africa, negatively impacted growth.

Looking ahead, improving customer analytics is a key priority and forms part of strategic review. Moreover, Global Value Propositions have been introduced to drive transition to data and enable global roaming .

 

 

 

Editor's Choice

Deception technologies, AI and Robo Hunters to  displace legacy cybersecurity solutions
IoT is rapidly expanding the attack surface of the digital enterprise and exposing it to enhanced risk levels not seen before. Deception technologies, artificial intelligence, Robo-hunters, are solutions for tomorrow's enterprise, Mechelle Buys Du Plessis, MD – UAE, Dimension Data.
The robots are coming: Impact of AI on executive search
As the technology industry’s elite struggle to agree on the potential impact of AI and a raft of people queuing up to advise on the potential disruption it will cause, this article by John Curtis-Oliver, Partner at Boyden studies the potential impact on the executive hiring and the executive search industry.
#MWC2018: Spotlight shines on 5G, IoT and AR
Hard to predict what will ‘turn around the fate’ of telecom operators, but there is potential for those who can play the role of enabling platform for new digital services and players, as well as for new features and capabilities across traditional industries, says Luis Cirne, partner, communications, media and technology (CMT) practice at Oliver Wyman

Most popular

Don't Miss a Story

You may also like

LinkedIn reveals the biggest reasons behind job switches in the region
As employers and offers get more competitive, top talent is more eager to jump on new opportunities.
MCIT Saudi Arabia signs MoU with Huawei to boost ICT skills development
From 2018 to 2020, 1,500 Saudis will undergo training from Huawei in skills related to ICT across the board. Joint developments to Huawei’s existing CSIC facility will focus on the development and utilisation of AI and IoT technologies in enabling the Kingdom’s entrepreneurs.
STC collaborates with ConsenSys to leverage blockchain for the Kingdom
The Saudi incumbent is working on developing innovative solutions for the government sector using blockchain technologies and aims to lead in offering blockchain application in Saudi market.
TRA UAE develops the roadmap of its 2018 business and initiatives
H.E. Al Mansoori delivered a general speech addressing six topics including international developments, TRA’s role in coming phases, in addition to issues such as the 5G, Artificial Intelligence, Internet of Things, and others.