MTN Group sees pressure on profit margins in South Africa, Nigeria

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Phuthuma Nhleko (L), CEO of MTN group, addresses a news conference in a file photo. REUTERS/Aladin Abdel Naby

MTN Group expects earnings to be under pressure for the rest of the year in its two main markets Nigeria and South African market, the company said on Wednesday, citing a weak exchange rate in Africa’s biggest economy.

Africa’s biggest mobile network operator by subscribers said in statement that weak economic growth in its key markets and tough competition could also negatively impact performance.

MTN said it was still negotiating a $3.9 billion fine by Nigerian authorities as the west African country.

Nigeria is pushing telecoms firms to verify the identity of subscribers amid worries that unregistered SIM cards were being used for criminal activity in a country still battling with Islamic militant group Boko Haram.

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