MTN Executive Chairman, Phuthuma Nhleko is expected to step down as acting CEO by the end of June 2016 “at the latest”, the group said on Wednesday (25 May).<\/p>\n
According to a statement put out by the group ahead of its AGM, the search for a new MTN Group CEO is well underway, and it will make an announcement in the coming month.<\/p>\n
The statement also dealt with the group’s overall fears for key markets in the year ahead.<\/p>\n
MTN said it expects its overall\u00a0performance to be impacted by the weak macro environment in key markets\u00a0as well as by tougher competition – most notably in South Africa and Nigeria.<\/p>\n
The company is still faced with a $3.9 billion fine in Nigeria, which it says it is actively engaging with Nigerian authorities over.<\/p>\n
Earlier this week, Bloomberg reported that talks with MTN over the fine were suspended by the Nigerian government, as it sought to further investigate the matter.<\/p>\n
The talks are reportedly\u00a0suspended indefinitely while the country\u2019s House of Representatives finishes\u00a0an investigation into the size of the penalty, and how it was delivered.<\/p>\n
Meanwhile, in South Africa, a crushing economic climate, along with the company troubles, have given way for the company’s biggest local competitor, Vodacom, to overtake it as the country’s – and the continent’s – highest-valued mobile operator.<\/p>\n
Despite its short- to medium-term worries, MTN said that it remained confident about the longer term.<\/p>\n
“While not without challenges we expect MTN Nigeria\u2019s performance to improve given the focus on\u00a0reconnecting subscribers and the re-instatement of regulatory services enabling the operation to\u00a0provide more competitive tariffs and promotions,” it said.<\/p>\n
“We expect the South African operation to report improved revenue growth through the rest of the\u00a0year supported by 3G and LTE network roll out, improvements in network quality and competitive\u00a0offerings.”<\/p>\n
As at 30 April 2016, the Group increased its subscriber base by approximately 1% to 230.3 million,\u00a0year-on-year.<\/p>\n
Reported Group revenue increased by 15% YoY, supported by a 21% decline in the average rand\u00a0exchange rate against the naira together with a 23% decline in the average rand exchange rate\u00a0against the US dollar compared with the previous period.<\/p>\n
Vodacom is now worth more than MTN<\/a><\/strong><\/p>\n MTN\u2019s share price rallies amid ongoing talks in Nigeria<\/a><\/strong><\/p>\n