MTN’s shares plummet after it warns of full-year loss
Cellphone network operator says the fine it received in Nigeria and foreign exchange losses would drag down earnings
MTN’s share price lost nearly 7% to R110 on Wednesday morning after it warned shareholders it expected to report a basic and headline loss per share for the year to end-December. The cellphone network operator did not give a range of the loss it expected to report on March 2, but said a further trading statement would be issued in due course. It said the loss was mainly due to the fine it received in Nigeria for failing to identify subscribers. The fine would drag its basic and headline earnings per share down by about R4.74 — the same amounted given in its interim results. MTN reported headline earnings per share (HEPS) of R12.04 and basic earnings per share (EPS) of R7.46 in its 2015 final results. Besides the 330-billion naira (about R14bn) fine it agreed in June to pay over three years, MTN said it also suffered "foreign exchange losses in a number of operations, losses from joint ventures and associates, additional depreciation resulting from prior hyperinflation adjustments in...
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