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

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