The South African Telecoms Company, MTN, announced on Thursday of the first ever loss since they started operation in Nigeria which is the worst record in 22years.
The company said they lose $200million in 2016 particularly, of suffering huge fine in Nigeria and currency challenges from the key market including Nigeria and South Africa.
In 2016, Nigeria communication commission (NCC) imposed N330billion regulatory fine on MTN over the failure to disconnect 5.1million unregistered sim cards.
Below is the statement from MTN;
“MTN Group’s financial results for 2016 reflect the most challenging year in the company’s 22-year history,”
So in Nigeria, MTN loses money because of the disconnection of 4.5million customers by the government, regulatory penalties and the weakness of naira against dollar.
In South Africa, MTN loses money because of the lower demand for mobile-phone contracts weighed on earnings.
Is it helpful? What do you have to say about this MTN loss?