South Africa’s MTN H1 Profit Falls

Enterprise Television – South Africa’s MTN H1 Profit Falls

MTN Group, Africa’s biggest mobile operator, has reported a 7 percent decline in half-year profit, due to a lower contribution from associates and joint ventures.

Report reveals the company’s Headline Earning Profit, came in at 215 percent in the six months through June compared with 231 percent a year earlier.

MTN said the results were negatively affected by a hefty 66 percent drop to 197 million rand in contributions, mainly from its joint venture in Iran and a widening loss in its e-commerce joint venture, Africa Internet Holdings.

MTN is in the middle of a strategic overhaul that includes branching out of basic telecoms services into music streaming, mobile banking and e-commerce and is reviewing its presence in markets where it not a major player.

According to report, the company sold its tiny Cypriot business last month for 4 billion rand ($300.68 million) to Monaco Telecom, sparking vague talk that other smaller businesses in Liberia, Guinea and Guinea-Bissau were next on the chopping block.

However, MTN has declared a dividend of 175 cents per share, and said it was on course to pay out a total of 500 cents for the 2018 financial year.

 

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