MTN Group has predicted improved annual earnings for 2017, as it bounces back from its first net loss in 20 years recorded in the previous year.
In a stock market statement issued ahead of the release of its annual results in March, the company said earnings will improve due to the resolution of problems in Nigeria which caused it to post a net loss of ZAR3.1 billion ($260 million) in 2016.
Major hits to its figures in 2016 included the payment of larger instalments on a hefty fine for failing to register the personal details of 5.1 million customers in Nigeria. It also reported an equity loss on a 51 per cent stake held in infrastructure company Nigeria Tower Interco, attributed to a weakness of the local currency against the US dollar.
These two factors, in addition to currency issues in other markets and decline in prepay in its home market of South Africa, led to MTN describing 2016 as the “most challenging year in the company’s 22-year history.”
Its anticipated swing back into profit comes amid bullish comments from MTN CEO Rob Shuter on its future expansion prospects and aim to become the largest financial services provider in Africa.
During 2017, the company also pressed ahead with preparations for the IPO of its Nigeria unit and, in November, Shuter talked up the growth prospects of its units in South Africa and Iran.
-Mobileworldlive.com
