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MTN full year profit plunges due to Nigeria fine

MTN full year profit plunges due to Nigeria fine

MTN told analysts on Thursday that it may float its Nigerian unit on the Lagos stock market once it had settled the dispute.

MTN also announced a 5.2% increase in its dividend to R13.10 per share for the year ended December 2015, despite acting executive chairman Phuthuma Nhleko saying the company experienced the most hard year in its history.

Late a year ago, Nigerian regulators fined MTN $3.9bn for failing to disconnect 5.2 million unregistered subscribers.

"MTN South Africa delivered encouraging results despite operational challenges, including industrial action in the first half of the year", the telecommunications group said on Thursday.

The total subscriber base increased by 4.1 percent to 232.5 million.

Permission to use quotations from this article is granted subject to appropriate credit being given to www.theeagleonline.com.ng as the source.

Spurs, Arsenal, Man City lose in EPL
They have five more games to play away from home, with tricky trips to Chelsea and Manchester United still to come. Liverpool were avenging their Capital One Cup final defeat to the Citizens at Wembley on Sunday.


After confirming the N50 billion payment, NCC through its Director of Public Affairs, Tony Ojobo, explained that the amount was an unconditional good faith payment, on the basis that the sum would be applied towards eventual settlement agreement for payment of the fine imposed on the company by the commission, while ongoing negotiations between government and the company reaches a final resolution.

MTN says it has set aside nearly R10 billion for a fine it's being forced to pay in its largest market, Nigeria.

This, combined with the disconnection of subscribers in the year, negatively impacted MTN Nigeria's results. Excluding these impacts, EBITDA reduced by 8.6 percent to ZAR 59.92 billion.

"The Management of MTN Nigeria has clarified that the R9287 million set aside in the recently released MTN Group Financial results is in accordance with the Principle of Prudence in generally accepted accounting standards", MTN Nigeria said.

MTN had an early victory in its legal battle with Nigerian authorities in January, after securing the right to transfer money out of Nigeria after the federal government sought to freeze its accounts.

A person from the MTN Group office in South Africa said, on the condition of anonymity, that the telecoms company could head back to court if the government fails to reduce the N780 billion fine, The Punch reported.


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