MTN is actively searching for a new group CEO to take the reins from acting executive chairman, Phuthuma Nhleko.<\/p>\n
Speaking at MTN’s annual\u00a0results presentation on Thursday (3 March) Nhleko said the search for a new CEO is well underway, with an announcement expected in the second quarter of 2016.<\/p>\n
The company head said\u00a0that finding the right group CEO is critical for\u00a0MTN’s\u00a0success, with Nhleko adding that\u00a0his role was a temporary one as the company faced its “most difficult year in history”.<\/p>\n
Nhleko\u00a0– a former MTN CEO – was elected\u00a0as executive chairman in a temporary capacity at the group, following the resignation of Sifiso Dabengwa as group CEO in November 2015.<\/p>\n
He took up the responsibility to\u00a0proactively deal with the Nigerian regulators regarding a\u00a0\u20a61.04-trillion (around R71-billion at the time) fine imposed on the company 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
Dabengwa stepped down as the company hit peak crisis mode around the Nigerian fine, saying that he was resigning\u00a0in the interest of the company and its shareholders.<\/p>\n
MTN Nigeria executives, including CEO Michael Ikpoki, and\u00a0head of regulatory and corporate affairs Akinwale Goodluck,\u00a0also stepped down.<\/p>\n
The MTN Nigeria fine saga had a profound impact on MTN’s financial results, with the company reporting a massive 51% drop in profits.<\/p>\n
This was largely due to a R9.3 billion provision made for the fine, as well as a R4 billion “good will payment” made to Nigerian authorities in a bid to soften their stance on the matter.<\/p>\n
However, even\u00a0excluding the Nigerian regulatory fine provision, the group’s headline earnings\u00a0still declined 25,3%, MTN said.<\/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 – though the disconnection of over 10 million subscribers in Nigeria and Uganda did not stop the group from growing its subscriber base by\u00a04.1% to 232.5 million.<\/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