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MTN swings into loss making territory over Nigeria fine

MTN swings into loss making territory over Nigeria fine

South Africa

MTN has said that it will report losses in its 2016 half year- earnings.

Africa’s biggest mobile operator on Thursday released a breakdown of the interim head loss that it expects to report on Friday, due to the hefty 330 billion naira ($1 billion ) Nigeria fine and weaker earnings in its home ground, South Africa.

MTN Nigeria was fined for failing to disconnect more than 5 million unregistered sim cards.

According to a statement, the firm indicates the loss will be between 2.85 rand and 3.15 rand per share in the six months ending June.

Analysts say the stock has lost as much as a third of its value in the Johannesburg Stock Exchange, after the fine was levied in October and is currently still 30% below its level when the penalty was announced.

Incoming CEO, Rob Shutter, has a tough task in turning around the Nigeria business which is MTN’s leading market in Africa.

News Agencies