South African telecoms companies lose billions in value

2015 was a challenging year for telecommunications companies in South Africa, with a sluggish local economy, increased competition, and pressure on margins.

The tougher operating conditions showed in the share price of Telkom and MTN, with both companies losing value this year.

MTN’s share price decline was aggravated by a prolonged strike in South Africa, and a massive fine in Nigeria.

The following graphs show the change in the share price of South Africa’s largest telecommunications companies – MTN, Vodacom, and Telkom – since the beginning of the year.

The share prices on 1 January 2015 and 16 December 2015 (hence the year to date) were used for this article.


MTN – Lost R169 billion in value this year

MTN’s share price declined from R221.41 on 1 January 2015 to R130.00 on 16 December 2016. This 41% loss meant that the company’s market cap decreased by R169 billion in the year to date.

MTN share price


Telkom – Lost R4.80 billion in value this year

Telkom’s share price declined from R70.00 on 1 January 2015 to R60.90 on 16 December 2016. This 13% loss meant that the company’s market cap decreased by R4.80 billion in the year to date.

Telkom share price


Vodacom – Grew by R23 billion in value this year

Vodacom’s share price increased from R128.43 on 1 January 2015 to R143.94 on 16 December 2015. This 12% growth means that the company’s market cap increased by R23 billion in the year to date.

Vodacom share price

More on SA telecoms

Behind-the-scenes look at Telkom’s impressive NNOC

Seacom less than 5% used

Latest news

Partner Content

Show comments

Recommended

Share this article
South African telecoms companies lose billions in value