MTN Group has issued a profit warning informing investors that they expect its full year profits to drop by about 20%.
The telecoms giant claims its profits was severely affected due to “under performance in Nigeria” its largest market.
MTN in 2014 reported that its revenue growth of 6,4% in the year was largely the result of an increase of 12.1% in MTN Nigeria’s revenue. MTN also faces a $3.9 billion fine from the NCC which it has taken to court and still trying to negotiate with authorities.
Reuters reports shares of MTN Group slumped more than 13% on Friday following this news as investors worry that things could even get worse if it provides for the Nigerian fine.
The post above and its ensuing comments, if any, is purely the opinion of the writer(s). It therefore should never be considered as an investment advise of any sort. If required, readers should please consult a competent professional financial adviser for any investment decision.
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