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.

Fin24

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

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

Do you think the ANC is limiting the growth of broadband connectivity in South Africa?

View Results

Loading ... Loading ...

More News

Watch: SABC song of appreciation for 90% South African music

SABC song

The SABC song of appreciation includes local artists giving thanks to the 90% local music quota on the broadcaster’s radio stations.

No way to avoid buying Jacob Zuma a new jet

Jacob Zuma in Germany speaking

Getting a new presidential jet seems to be unavoidable, Defence Minister Nosiviwe Mapisa-Nqakula said in Parliament on Wednesday.

Massive Vodacom fibre-to-the-home data price cuts

Vodacom logo outside

Vodacom has overhauled its fibre-to-the-home packages, offering customers cheaper data prices across its range of line speeds.

You are sharing too much information on Facebook, and fraudsters love it

Facebook Notifications

Sabric has said that fraudsters are resorting to more subtle ways of stealing the personal information of South Africans, which can lead to their bank accounts being compromised.

X

Newsletter Subscription


Name
Email *
Enter the following to confirm your subscription *
Captcha image


Free MyBroadband Newsletter
Subscribe
×