MTN set for R15.9bn profit in Nigeria

Johannesburg - Africa’s biggest mobile network MTN [JSE:MTN] looks set to make a R15.9bn profit in Nigeria, the company said in a statement on Tuesday.

The company was responding to a report in Nigeria’s This Day newspaper which reported that it had seen documents which showed that MTN’s profit after income tax was about 190 billion naira (R15.9bn) at the end of December 31, 2015.

MTN said that it is busy completing its audit and that its financial results are yet to be finalised. But the company noted that the figure of R15.9bn was close to estimates.

“Noteholders are further informed that the profit after tax figure for MTN Nigeria for the period ended 31 December 2015 being quoted in the press article, is naira 190 billion (R15.9bn) which is within the current estimate but is subject to finalisation and audit sign off,” said MTN.

This Day referred to the figure in a report about MTN’s financial results showing that it could struggle to pay its $3.9bn (777 billion naira) fine in Nigeria in one tranche.

Nigerian regulators imposed the multi-billion dollar fine on MTN last year after the mobile network failed to disconnect five million SIM cards in a timely manner.

MTN is challenging the fine in Nigeria’s courts.