MTN declared a R2.50 interim dividend despite falling into a R2.71 headline loss per share.

The interim dividend was nearly half the matching period’s R4.80.

The group’s overall revenue grew 14% to R79bn in the six months to end-June from the matching period in 2015, the company said in its interim results statement on Friday.

It fell into an aftertax loss of R6.2bn from a profit of R13.9bn.

Its Nigerian regulatory fine amounted to R10.5bn, and there was an additional R1.3bn in professional fees relating to the fine.

MTN said its overall subscriber numbers remained flat at 232.6-million at the end of June from the end of December.

Its South African subscriber numbers were down 2.6% to 29.8-million. This was mainly due to strong competition and economic pressure in a highly penetrated market, chairman and acting CEO Phuthuma Nhleko said in the results statement.

Despite the slightly smaller customer base, MTN grew revenue in its home market by 5% to R19.8bn, thanks to higher device sales and data revenue.

“Growth in outgoing voice revenue remained a challenge, impacted by a 48-hour network outage affecting approximately 1-million subscribers in February 2016 and higher churn in the post-paid segment,” Nhleko said.

Its South African earnings before interest, tax, depreciation and amortisation (ebitda) were down 11% to R6bn. Nhleko blamed this on lower handset margins following aggressive handset sales and increased network-related costs associated with the expansion of its 3G and LTE sites.

MTN has about R15.4bn still trapped in Iran despite the lifting of sanctions against that country. Nhleko said it was working to towards remitting this cash “although this is a complex process.”

•Source: Business Day South Africa. Photo shows MTN Chairman Phuthuma Nhleko

Update news