Business 4.8.2016 10:52 am

Nigerian fine hammers MTN earnings

Picture: Moneyweb

Picture: Moneyweb

The fine was later reduced to $3.9 billion and MTN was given three years to pay it.

MTN has on Thursday warned that it expected to report a headline loss per share of 285-255 cents for the six months ended in June, down from headline earnings per share of 654 cents last time, as it struggled under the weight of a hefty fine from the Nigerian authorities.

In October last year, the Nigerian Communications Commission fined the telecommunications company $5.2 billion for missing a deadline to disconnect 5.1 million unregistered subscribers. The fine was later reduced to $3.9 billion and MTN was given three years to pay it.

However, the company’s problems with compliance did not end there. In Thursday’s statement, the company said its performance in Nigeria in the period under review had also been impacted by the disconnection of 4.5 million subscribers in February, the final batch of subscribers to be disconnected in compliance with the authorities’ requirements.

To add to its woes, MTN said, currency fluctuations had inflicted further damage.

The full results for the six months are expected on Friday.

– African News Agency (ANA)

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