As mobile operator MTN's leadership prepared to officially present its annual financial 2015 results on 3 March 2016 in Johannesburg, preliminary media reports had already detailed the company's 51% drop in full-year profit, attributed to the US$3.9bn fine imposed on its Nigerian operation by the Nigerian Communications Commission (NCC) in October 2015.
The company reported a basic headline earnings per share (HEPS) declined by 51.4% to 746 cents, largely as a result of provision of R9,28-million towards the fine, and a final dividend of 830c per share with a total dividend of 1310 cents per share.
A decline in voice revenue in Nigeria and a reduction in handset revenue in South Africa due to industrial action in the first half of the year contributed to the Group's flat revenue for the year.
A statement posted on the company's website reads: "MTN Nigeria continues engaging with the Nigerian authorities in an attempt to ensure an amicable resolution in the interest of MTN Nigeria, its stakeholders and the Nigerian authorities.
The fine imposed on MTN Nigeria and the related process continues to receive extensive attention from the Group Board of Directors (the board) and management and the Group will continue to update shareholders on any material developments. Until the matter is resolved, MTN shareholders are advised to exercise caution when trading in MTN securities."
In late February MTN Nigeria made a good faith payment of 50-billion Naira (US$250-million) to Nigeria's federal government.
MTN Group Executive Chairman and director of MTN Nigeria Phuthuma Nhleko is leading the company's negotiation team in its ongoing engagement with Nigerian authorities.
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