MTN shares hammered

Shares in mobile network MTN slid around 13% on Friday morning after the company forecast a 2015 earnings drop of at least 20%.

By - February 19, 2016 Share on LinkedIn
MTN shares graph

Shares in mobile network MTN  slid around 13% on Friday morning after the company forecast a 2015 earnings drop of at least 20%.

MTN, in a Thursday trading update, said it expected a decrease of at least 20% in basic headline earnings per share (HEPS) for the year ended December 2015.

MTN blamed its weaker earnings forecast on Nigerian regulators forcing the mobile network to disconnect 5.2 million unregistered SIM cards. The company added that it’s experienced the “withholding of regulatory services” in Nigeria.

The mobile network’s share price closed at R153.7 on the Johannesburg Stock Exchange (JSE) on Thursday, but on Friday morning at 09:08 the company was trading down over 15% at R129.

The share price then bounced back to R135.5 at 09:42.

Nigeria is MTN’s biggest market as the company has over 60 million subscribers in that country.

The Nigerian Communications Commission (NCC) last year fined MTN $3.9bn over the network’s failure to disconnect 5.2 million unregistered SIM cards in a timely manner.

MTN, though, has challenged the fine in Nigeria’s courts. A Lagos judge, earlier this year, also adjourned the matter to March 18 to allow the two parties to try settle outside of court.


MTN will reimburse subscribers hit by major data outage

MTN “connectivity challenges” fully resolved

MTN network hit by connectivity issues

Share your thoughts

Join the conversation

Connect with Us



Would you buy a Mercedes-Benz bakkie?

View Results

Loading ... Loading ...

More News

Telkom testing migration of mobile Internet traffic to Telkom Internet

Telkom logo light

Telkom is investigating the migration of Internet traffic from the mobile network to the Telkom Internet network.

Department of Telecommunications’ progress in connecting schools and government institutions – Zero

Siyabonga Cwele at SATNAC 2015

“No targets relating to the national broadband plan have been met as the tender for connecting government institutions and schools has not been awarded as yet,” said the DTPS.

Eskom’s guarantees worry Treasury

Eskom logo light

Treasury highlighted increasing guarantees for state-owned enterprises as a “source of vulnerability” on the fiscus that requires close attention.

The best Internet browser – Chrome vs Edge vs Firefox

Web browsers Chrome Firefox Safari Edge Opera

VentureBeat has published its latest Internet browser “benchmark battle”, testing how the big browsers perform in a series of tests.

Free MyBroadband Newsletter