Shares in MTN fell by 5% when it announced that investors should be expecting a decline in first-half earnings. The telecoms giant blames the drop on the adverse exchange rate that hurt its international business, principally in Nigeria.
Africa’s largest mobile operator said in a statement that its headline earnings per share (EPS) will be between 10% and 15% lower for the six months through June 30 compared with the corresponding period in 2014.
According to the company, “The unkind currency movements affected the rate at which revenue and EBITDA were changed and was worse hit than 2014
Nigeria is MTN’s largest Operating country and the country has been affected by falling oil prices. Oil prices were at an average of $50 per barrel between January and April 2015. The prices have dropped by more than 60 per cent between June 2014 and January 2015.
The country’s operations was also affected by a nationwide fuel shortage in May. The shortage brought much of Nigeria to a standstill as private generators that produce most of the electricity for the nation’s 170-million inhabitants and businesses ran out of fuel.
All these affected the economy, trade and mobile usage in the country.
The company is expected to announce its interim results early next month i.e. 5th of August.
