Nigeria boost triggers 8.7% rise in MTN’s full-year earnings

Africa’s largest telecom provider, MTN Group on Wednesday posted an 8.7 percent rise in full-year earnings after a revenue boost from Nigeria, which posted a 12 percent revenue increase despite regulatory and operational challenges.

Although the country’s performance was below MTN’s own expectations, it warned of possible headwinds as weaker oil prices could bring economic doubts to its key market.

“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.

MTN further revealed that it attracted 7.5 percent more customers to its 223.4 million subscribers while it expects to add 17.5 million customers in 2015, with more than a quarter of them expected from Nigeria.

With operations in nearly two dozen countries, the company said data revenue was a key driver of growth, climbing 33 percent to contribute nearly a fifth of overall revenue.

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 1,404 cents a year ago in line with MTN’s prediction that it would come in 5-15 percent higher.

Although, it declared 1,245 cents per share total dividend, the company’s stock has fallen nearly 6 percent so far in 2015 on the Johannesburg Stock Exchange, compared with a 7 percent increase by Johannesburg’s Top-40 index.