MTN cuts dividend

Johannesburg - MTN Group, Africa’s largest mobile-phone company, said it plans to cut the full-year dividend and put about R9.29 billion ($597 million) aside for payment toward a record $3.9 billion regulatory fine in Nigeria, its biggest market.

MTN will pay a minimum of R7 a share to investors in 2016, the Johannesburg-based wireless operator said in a statement on Thursday. That compares with a R13.10 dividend for last year, a 5.2 percent increase on 2014.
“We have adopted a cautious approach to the dividend outlook, taking into account the interests of shareholders and lenders and the importance of maintaining an investment-grade credit rating,” MTN said. “This minimum dividend remains subject to the outcome of the regulatory fine.”
MTN was fined by the Nigerian Communications Commission last year for missing a deadline to disconnect 5.1 million subscribers that the regulator had deemed to be unregistered in the country, which is tightening security as it battles an Islamist insurgency. The uncertainty surrounding the record penalty has wiped almost a third off the company’s share price since it was made public on October 26.