MTN Group, Africa’s biggest mobile phone operator, has announced it triumph over 2016 turbulent highlighting the risks of the company’s emerging markets strategy to a profit-making firm.
MTN revealed on Thursday in Johannesburg that it’s earnings for first-half of the year had rebounded as its headline earnings came in at 3.9 billion rand ($294.40 million), or 212 cents per share, in the six months to end June compared with a loss of 4.9 billion rand, or 271 cents per share, a year earlier.
“These numbers give us hope for the future. It is a very encouraging platform upon which to build our strategy,” said Rob Shuter, former Vodafone European head, who became chief executive in March.
MTN’s shares were nearly 3 per cent higher at early trading due to the positive results and these results were bolstered by the absence of charges related to a $1.1 billion fine imposed by Nigerian authorities last year in a long-running dispute over unregistered SIM cards.
Founded at the end of white rule in 1994, MTN’s clashes with regulators in the past few years had held back growth and threatened to tarnish its image as one of post-apartheid South Africa’s biggest commercial successes.
MTN has more than 200 million users in more than 20 countries in Africa and the Middle East. haven said last week that the loss in the first half of last year was mainly due to “non-recurring costs”, including the Nigerian fine.