MTN Group recorded its first-ever earnings per share (EPS) loss as a publicly traded company — which it blamed on the Nigerian Communications Commission (NCC) over the N330 billion fine slammed on its Nigerian operation last year.
In a statement released on Thursday, MTN said it would announce the half year results on Friday, but it gave shareholders a heads-up on the coming loss.
“Following the trading statement published on 19 July 2016, shareholders are further advised that MTN expects to report for HY2016 a basic headline loss per share of between 285 cents and 255 cents and a basic loss per share of between 315 cents and 285 cents,” MTN said.
“In the prior year comparable period MTN reported headline earnings per share of 654 cents and earnings per share of 653 cents.”
MTN highlighted the factors that negatively impacted its earnings, prime of which was the Nigerian fine.
“The Nigerian regulatory fine which had a material impact on results for the period. The income statement charge reflects the present value of the balance outstanding at 10 June 2016 of N280 billion (USD1,418 billion, using the exchange rate prevailing at the time), reduced by the reversal of the provision made in December 2015 of Naira 119,6 billion (USD 600 million, using the exchange rate prevailing at the time),” it said.
“In total, the net effect of the Nigerian regulatory fine on the current period was a negative impact of 474 cents per share (cps).
“MTN Nigeria’s performance was impacted by the disconnection of 4.5 million subscribers in February 2016, the final batch of subscribers to be disconnected in compliance with the Nigerian Communications Commission subscriber registration requirements. The withdrawal of regulatory services which were re-instated on March 15, 2016 with approval for promotions and price plans granted in early May 2016 is also negatively impacting MTN Nigeria’s performance.”
MTN blamed other losses on the depreciation of the rand and operating currencies against the USD, and hyperinflation on MTN Irancell.
ARIAN boss advocates N1000 insurance policy for school children
By Vera Wisdom-Bassey
President of Association of Registered Insurance Agents of Nigeria (ARIAN), Mr. Olamerun Gbadebo, has stated that parents can pay as low as N1,000 for insurance policy of their children’s education, appealing to them to key into the investment despite the present economic downturn.
Gbadebo, who made this known while fielding questions from journalists recently, said available statistics show that most Nigerian children drop out of school due to lack of funds, adding that with the said amount, the education of a child could be guaranteed.
He emphasised that most families cannot afford good education for their children anymore as a result of increasing poverty level, which is gradually eating into the fabric of most homes.
With the insurance policy, he said, “the education of the child is secured, irrespective of how the economy has affected the family,” saying the Nigerian child’s education is its paramount responsibility as an organisation.
The ARIAN president stated that the association does not want to see a situation where a child cannot get a good education despite the billions of naira budgeted for education in 2016.
Recounting his life experience, Gbadebo who lost his father at a tender age while in SSS three, said graduating was difficult for him because of lack of school fees. He lamented that the responsibility was left on mother’s shoulders, which almost truncated his academic career.
Stating that a lot of Nigerian children face similar situations, he therefore called on NGOs educational builders, governments and everybody in the education board to join forces and plan the way forward for the Nigerian child.
“If the parents cannot afford schools fees, the government can take a palliative measure, and value the education of the Nigerian child as it regards the poorly placed ones,” Gbadebo said.
He therefore enjoined all and sundry to key into the micro insurance policy, especially those in the rural areas.
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