The group makes most of its money in Nigeria, followed by South Africa and Ghana.<\/p>\n
MTN\u2019s strong foothold in Africa is a valuable asset. However, corruption and political instability associated with the continent are also significant risk factors for investors.<\/p>\n
According to the Corruption perceptions index published by Transparency International, Nigeria, Afghanistan, and Sudan are among the world\u2019s top 25 most corrupt countries.<\/p>\n
Afghanistan, Nigeria, and Cameroon are also in the top ten high-risk terrorism countries.<\/p>\n
MTN has operations in these countries, meaning investors price in the risk. The result is that MTN\u2019s share price trades at a discount.<\/p>\n
It is not irrational for investors to be concerned.<\/p>\n
Nigeria, for example, has levied huge fines against MTN, which had a big impact on its share price in the past. Problems in Iran have also dogged the mobile operator for years.<\/p>\n
While MTN\u2019s operations in Afghanistan, Iran, Sudan, and Cameroon pose a risk, it is Nigeria that investors are most concerned about.<\/p>\n
MTN derives a large chunk of its revenue and profit from the country, which is prone to political instability, and its economy is closely linked to the oil price.<\/p>\n
Daily Investor created an easy-to-understand chart to make it easy to see in which regions MTN makes most of its money.<\/p>\n
The diagram below shows where MTN\u2019s 2021 revenue is generated and how it developed into Net profits.<\/p>\n
This article was first published by Daily Investor<\/a><\/strong> and is republished with permission.<\/em><\/p>\n This is how MTN generates revenue, where it spends money, and how much profit it makes.<\/p>\n","protected":false},"author":341111,"featured_media":472009,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[80335],"tags":[35,42],"class_list":["post-472007","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-headline","tag-mtn"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/472007"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341111"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=472007"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/472007\/revisions"}],"predecessor-version":[{"id":472017,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/472007\/revisions\/472017"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/472009"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=472007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=472007"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=472007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/11\/MTN-Revenue-2022.jpg\")
<\/a><\/p>\n
\nNow read:\u00a0How Vodacom makes and spends money<\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"