Africa’s largest telecom provider MTN
Group posted an 8.7 percent rise in full-year earnings on Wednesday
after a revenue boost from Nigeria, but warned of possible headwinds as
weaker oil prices bring economic doubts to its key market.
While Nigeria’s performance was below
MTN’s own expectations after regulatory and operational challenges, its
revenue increased by more than 12 percent.
“In Nigeria some level of uncertainty
remains with regards to the implications of the oil price and currency
fluctuations, which may lead to slower economic growth,” MTN said in a
statement.
With operations in nearly two dozen
countries, the company expects to add 17.5 million customers in 2015,
more than a quarter of them in Nigeria alone.
MTN said diluted headline earnings per
share, the main measure of profitability in South Africa, rose to 1,527
cents in the year ended December from a restated 1,404 cents a year
earlier.
The increase was in line with MTN’s
guidance that headline earnings per share would come in 5-15 percent
higher. It declared a 1,245 cents per share total dividend.
Revenue grew 6.4 percent after MTN
raised customer numbers by 7.5 percent to 223.4 million subscribers. The
company said data revenue was a key driver of growth, climbing 33
percent to contribute nearly a fifth of overall revenue.
The company’s stock has fallen nearly 6
percent so far this year, compared with a 7 percent increase by
Johannesburg’s Top-40 index.
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