MTN has reported a big drop in earnings for the six months ended June 2016, which it says is primarily down to its operations in Nigeria – including a regulatory fine.<\/p>\n
The group said it paid R1.324 billion for\u00a0 a range of professional services to help reduce its fine incurred after it failed to disconnect more than five million unregistered SIMs on its network in the country.<\/p>\n
On 10 June MTN Nigeria resolved its issues with the Federal Government of Nigeria (FGN) and agreed to pay the FGN a total cash amount of 330 billion Nigerian naira $1.671 billion, over three years.<\/p>\n
MTN said it would also comply with certain other regulatory conditions imposed as part of the settlement reached.<\/p>\n
The company paid 50 billion naira (US$250 million) ‘in good faith’ on 24 February 2016, as part of the monetary component of the settlement, leaving a balance of 280 billion naira (US$1,418 billion, using the exchange rate prevailing at the time) outstanding.<\/p>\n
In June 2016 the first scheduled payment of 30 billion naira (US$124 million) was made, with the remaining cash payable at 30 June 2016 amounting to 250 billion naira (US$882 million).<\/p>\n
MTN said it accrued the present value of 280 billion naira (US$1,418 billion, using the exchange rate prevailing at the time), which in total had a negative impact of R10.5 billion on reported earnings before interest, tax, depreciation and amortisation and impairment of goodwill (EBITDA) and a R8.63 billion negative impact on the group\u2019s reported headline losses, or 474 cents on reported headline losses per share.<\/p>\n
The mobile operator said it incurred a cost of R1.324 billion ‘on a range of professional services’ relating to the negotiations that led to a reduction of R34 billion in the Nigerian regulatory fine to 330 billion naira (US$1,671 billion, using the exchange rate prevailing at the time).<\/p>\n
Financial results snapshot for the six months ended 30 June 2016:<\/p>\n
\u2013 Group subscribers remained flat at 232.6 million from 31 December 2015
\n\u2013 Revenue increased by 14.0% to R78.88 billion
\n\u2013 Data revenue increased by 32.2% to R19.85 billion
\n\u2013 Voice traffic and data traffic increased by 7.9% and 135.3% respectively
\n\u2013 EBITDA decreased by 3.3% to R29.273 billion
\n\u2013 Headline loss per share of 271 cents
\n\u2013 Interim dividend of 250 cents per share
\n\u2013 Nigeria regulatory fine re-measurement impact of R10.5 billion<\/p>\n
MTN South Africa struggles to keep its subscribers<\/strong><\/a><\/p>\n This is why MTN is making a loss in the first half of 2016<\/strong><\/a><\/p>\n MTN reveals when it plans to list in Nigeria<\/a><\/strong><\/p>\n