How much value MTN has really lost

Over the last nine months, MTN’s share price has halved – but the company has lost far more than 50% when looking at its value in a major currency.

By - January 21, 2016 Share on LinkedIn
MTN shares graph

A massive fine in Nigeria and tougher operating conditions saw MTN’s share price plummet from R246.02 on 28 April 2015 to R117.70 on 20 January 2016.

This resulted in MTN’s market cap declining from R454 billion in April 2015 to its current R217 billion.

However, this only reveals part of the value loss. When measured against the US dollar, and most other major currencies, the situation looks far worse.

On 28 April 2015, the rand traded at R11.86/USD. Since then, the local currency weakened to R16.80/USD – which hurt MTN’s value in dollars.

Looking at MTN’s market cap in US dollars shows that the company’s value declined from $38 billion in April 2015 to $13 billion in January 2016.

This means that, in dollar terms, MTN has lost nearly two-thirds of its value over the last nine months.

MTN Market Capitalisation

The double whammy which hit MTN

The graphs below show the decline of MTN’s share price and the weakening of the rand, respectively, over the last 12 months.

MTN share price

ZAR per 1 USD

More on MTN

MTN in Nigerian stand-off over R60.6-billion fine: report

The real reason for Nigeria’s massive R59-billion fine on MTN

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

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.

Software worth over R4 billion pirated in South Africa

Internet Piracy

A new BSA The Software Alliance study pegs South Africa’s software piracy rate at 33%.

Microsoft “tricks” users into upgrading to Windows 10

Windows 10 logo

Microsoft has been accused of changing the pop-up box asking Windows users to upgrade to Windows 10 to schedule the upgrade if the red “close” cross is clicked.

Seacom in the market to buy Internet companies in South Africa

Seacom logo wood

Neotel would be one of its targets, said Seacom.

X

Newsletter Subscription


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


Free MyBroadband Newsletter
Subscribe
×