Nigeria based South African telecoms, MTN has revealed that it suffered a whooping $200m loss in the last fiscal year 2016. According to MTN Nigeria, it’s the company’s worst record in the past 22 years after suffering a huge fine in Nigeria and currency challenges in key African markets including Nigeria and South Africa.
MTN tagged this loss to the N330bn regulatory fine imposed on them by the Nigeria Communication Commission (NCC) over its failure to disconnect 5.1 million unregistered simcards last year. Read their statement below...
“MTN Group’s financial results for 2016 reflect the most challenging year in the company’s 22 year history,” a statement by the company read.
“The performance in Nigeria was hurt by the forced disconnection of 4.5 million customers by the government a year ago, regulatory penalties and the weakness of the naira against the dollar.
“In South Africa, lower demand for mobile-phone contracts weighed on earnings.
“Towards the end of 2016 our two largest operations (Nigeria and South Africa) began to show signs of a turnaround following an extended period of under-performance.”
Recall, in the year 2015 financial year MTN reported profits of 20.2 billion rand ($1.6bn) before tax, the revenue was fractionally up for the year at 146.9 billion rand ($11.3bn). While in August 2016, the company revealed its first-ever half year loss.
In order to combat these, MTN said it expects to add 8.3 million new users in the 2017 financial year. It said its total subscribers increased by 3.3% or 7.7 million to 240 million in 2016. This is a press release.