MTN Group released its 2015 financial results, which showed the company’s profits dropped by 50%, as the company has also set aside $600 million to cover the settlement of the fine by the Nigerian telecommunications commission (NCC).
MTN also explained that financial results reflect the challenging operating environment the business experienced in the year as weak macro-economic conditions, increased market competition, heightened regulatory pressures, notably in Nigeria, and operational challenges in some of our markets resulted in a lower-than-expected performance
The South African company has been at loggerheads with the NCC for months to reduce the $3.9 billion fine which was imposed for failing to cut off unregistered SIM card users, and it recently confirmed that it had paid $250 million to the Nigerian government.
Here is a summary of the result:
FY revenue increased 0,1% to R146 353 million
FY HEPS decreased 51,4% to 746 cents
FY EBITDA decreased 8,6% to R59 918 million
Final dividend of 830 cents per share, with total dividend of 1 310 cents per share
FY EBITDA margin decreased 3,9 percentage points to 40,9%
Capex increased 15,7% to R29 199 million
Voice traffic and data traffic increased 14,5% and 108,5% respectively
