EDITORIAL: Investors give MTN’s Mupita breathing space
CEO advances reasons for putting dividends on hold while reminding shareholders of the risks associated with its emerging markets strategy
Investors have quickly moved on from this week’s unexpectedly disappointing news that MTN will temporarily close dividend taps, helping the stock rebound strongly and piling pressure on CEO Ralph Mupita to make good on his promise to return at least R4.7bn to shareholders in the next financial year.
Shareholders were initially a tad annoyed, pushing the stock to its biggest one-day drop in a month, after they learnt that they are going to miss out on this year’s returns even after their company’s services had been more essential than ever during the lockdown as business and entertainment moved online. ..
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.