Mobile operator MTN said on Wednesday that its results for the year ended December 2015, reflect the challenging operating environment experienced in the year.<\/p>\n
Weak macro-economic conditions, increased market competition, heightened regulatory pressures, notably in Nigeria, and operational challenges in some of our markets resulted in a lower-than-expected performance.<\/p>\n
MTN reported a 51.4% decline in basic headline earnings per share (HEPS), to 746 cents. This was largely a result of the Nigerian regulatory fine provision (R9.287 billion), which had a 402 cents negative impact on HEPS.<\/p>\n
Excluding the Nigerian regulatory fine provision, HEPS still declined 25.3%, MTN said.<\/p>\n
In addition, HEPS were negatively impacted by hyperinflation of 54 cents and losses from investment in African Internet Holdings (AIH) and Middle East Internet Holdings (MEIH) and from the tower companies.<\/p>\n
Excluding the impact of these operations, on a like-for-like basis HEPS still declined 14.3%, MTN said.<\/p>\n
Excluding hyperinflation, profit from operations declined to R35.3 billion, from\u00a0 R36.59 billion.<\/p>\n
The group\u2019s subscriber base increased by 4.1% to 232.5 million, despite the disconnection of 10.4 million subscribers to ensure compliance with subscriber regulatory registration requirements in Nigeria and Uganda.<\/p>\n
Group revenue remained flat in the year largely due to a decline in voice revenue in Nigeria and a reduction in handset revenue in South Africa, MTN said.<\/p>\n
This followed the industrial action experienced in the first half of the year which led to lower distribution of handsets.<\/p>\n
MTN South Africa<\/strong> continued to show encouraging service revenue, which excludes handset revenue and other revenue, growth trends, regaining relevance in the pre-paid segment in the second half of the year.<\/p>\n Revenue growth in South Africa was supported by strong growth in data, benefiting from extensive 3G and LTE network rollout in the year, MTN said.<\/p>\n South Africa Highlights<\/strong><\/p>\n Group Highlights<\/strong><\/p>\n The operator said the fine imposed on MTN Nigeria and the related process continues to receive extensive attention.<\/p>\n The Nigerian Communication Commission (NCC) fined MTN \u20a61.04-trillion (around R71-billion at the time) in October 2015 for not disconnecting unregistered SIMs on its network.<\/p>\n After negotiations with Nigerian authorities, the fine was reduced by 25% to \u20a6780-billion.<\/p>\n In the near term, MTN said it anticipates the resolution of the ongoing suspension of regulatory services which continues to restrict new tariff plans and promotions for MTN Nigeria.<\/p>\n “We expect the South African operation to continue the positive trend shown during H2 2015, improving its operational performance with the support of strong leadership, leveraging an enhanced 3G\/LTE device strategy, as well as increased focus on customer services,” MTN said.<\/p>\n The extensive 3G and LTE network rollout in 2015 will also benefit the operation in 2016.<\/p>\n “Improving network quality and capacity in key markets remains a priority. We will continue to close and improve coverage of 3G, LTE and LTE advanced in Nigeria, South Africa, Ghana and Cameroon.<\/p>\n “In addition, improved quality and throughput in homes and fixed locations through the rollout of fibre-to-the-home (FTTH) in South Africa, Nigeria, Ghana and Iran will be a focus in 2016,” the company said.<\/p>\n MTN Group operates in 22 countries<\/b> in Africa and the Middle East. <\/span><\/p>\n MTN pays R3.8 billion to soften up Nigerian authorities<\/a><\/strong><\/p>\n MTN shares drop 18% amid Nigeria nightmare<\/a><\/strong><\/p>\n\n
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