MTN full year profit plunges due to Nigeria fine

Africa’s biggest mobile network, the MTN Group, has recorded a 51% drop in full year profits.

Cellular news from MyBB: MTN profit plunges 51% amid Nigeria fine https://t.co/hrA1XskVkn

— Ylana Haarhoff (@YlanaHaarhoff) March 3, 2016

The company said the drop was largely due to the Nigerian regulatory fine provision of $600 million to cover a potential settlement of a fine imposed by Nigerian authorities last year for failing to cut off 5.1 million unregistered SIM card users.

The company currently is in talks with Nigerian authorities to reduce the $3.9 billion fine imposed last year.

According to media reports, South Africa’s president, Jacob Zuma will be in Nigeria next week to further negotiate with president Muhammadu Buhari over the fine.

The company further added it may list the Nigerian unit on the Lagos stock market once it had settled the dispute.

South Africa's MTN may list in Nigerian Stock Exchange once fine resolved https://t.co/mLkTtPJJaG https://t.co/DAAAnGSR5E #AfricaMeansBus…

— Afrinnovator (@Afrinnovator) March 3, 2016

The company also announced a surprise 5.2 percent increase in its dividend to 1,310 cents per share.

However, for the 2016 financial year, MTN is planning on declaring a minimum dividend of 700 cents, subject to developments in Nigeria regarding the fine.