Africa’s biggest mobile phone operator MTN Group recorded its first annual loss in 20 years largely as result of fine in Nigeria and unfavorable currency in key markets.
Founded in 1994, the telecom giant said it had posted net loss of a $200 million loss in 2016. “MTN Group’s financial results for 2016 reflect the most challenging year in the company’s 22-year history,” MTN said in a statement.
MTN agreed to pay a fine of 330 billion naira ($1.1 billion), in June last year after a prolonged legal battle to end a dispute in Nigeria over missing a deadline to cut off unregistered SIM cards.
Nigeria is MTN’s largest market, with over 62 million subscribers out of the 233 million total subscribers for the group.
The company reported that total subscribers increased by 3.3 percent or 7.7 million to 240 million. The company looks to add 8.3 million new users in the 2017
The MTN share price on the Johannesburg stock exchange rose five percent after the company announced a 77 cent dividend despite posting losses.
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