MTN holds tight to its belief in Iranian promise
Nigerian woes and US hostility to Iran detract from market potential
When MTN first ventured outside SA in the early years of the century, there was caginess among an investment community not sold on the mobile market on the rest of the continent and in the Middle East. News of MTN's initial foray, 17 years ago, into Nigeria, which would eventually overtake its domestic market, was accompanied by a falling share price as investors felt that the operator was taking too great a risk. More than a decade has passed and, for the most part, MTN's ambition to become Africa's largest mobile operator has paid off handsomely for shareholders. It hasn't been without its troubles, however, namely in Nigeria, where run-ins with the regulator came within inches of a multibillion-dollar fine three years ago. From their peak in 2015, MTN's shares are now close to 60% lower, trading at their weakest levels (around R100) in eight years. Nigerian woes and slowing growth in SA, because of stiff competition, have created a perfect storm.The one silver lining seemed to be...
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.