Despite Fines, MTN Posts ZAR78,8 Billion For H1

MTN Group

MTN has finally released full details of its half year earning showing its gross revenue for the period rose by 14% to hit ZAR78,8 billion.

The group’s net active subscribers for the period was Group subscribers reported 232,6 million, this represents the 22 countries where MTN is doing business.

For the first half the year, MTN’s earnings before interest, depreciation and amortization, EBITDA fell by 3,3% to ZAR29 273 billion.

Revenue for Nigeria increased by 17.4% to ZAR28,9 billion versus ZAR24,6 billion it recorded last year. This represents 36.7% of the group’s total revenue.

Giving depth to the result MTN said in its summary that” the group’s reported results were significantly impacted by the Nigerian regulatory fine. On 10 June MTN Nigeria resolved this matter with the Federal Government of Nigeria (FGN) and agreed to pay the FGN a total cash amount of NGN330 billion (US$1,671 billion, using the exchange rate prevailing at the time) over three years in a full and final settlement”.

“This was agreed in addition to complying with certain other regulatory conditions imposed as part of the settlement reached. The 50 billion naira (US$250 million) paid in good faith and without prejudice by MTN Nigeria on 24 February 2016 forms 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. In June 2016 the first scheduled payment of 30 billion naira (US$124 million) was made. The remaining cash payable at 30 June 2016 amounted to 250 billion naira (US$882 million)”.

MTN also reiterated its decision to list on the Nigerian Stock Exchange, NSE by 2017 and that it has “established a management task team with the responsibility to guide the company towards such a listing. The proposed listing is subject to suitable market prevailing circumstances and conditions and the appropriate approvals from relevant regulators and other stakeholders”.

 

 

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