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Q3’2018: MTN reports 28.5 % loss on digital revenues

MTN Group, yesterday, announced a 28.5 per cent revenue decline on MTN Nigeria services, blaming the continued optimisation of its value added services, VAS.

This is also as the telco blamed the Central Bank of Nigeria, CBN, and the Attorney General of the Federation, AGF, for its inability to accomplish listing process in the Nigerian Stock Exchange market. MTN Group president/Chief Executive Office, Rob Shuter, who made the disclosures while delivering the Q3, 2018 financial year report, said the loss was expected to continue to the next quarter due to expected low VAS revenue earnings.

The Nigerian Communications Commission, NCC, had on May 21, 2018 issued a directive to all network providers to desist from imposing any value added services on the subscribers without their express permission.

The commission warned that service providers in the country that automatically renew data packages without the consent of the subscribers or inundate them with unwarranted value added services, risk N5 million fine.

The commission requested them to optimise their VAS services to conform to the new order. It said the warning became imperative in view of the mounting complaints from subscribers against the service providers for breaching extant rules.

Shuter also pointed to two incidents, the allegation by CBN of improper dividend repatriations by MTN Nigeria between 2007 and 2015 of $8.1 billion and the allegation by the AGF that MTN accumulated unpaid taxes on foreign payments and imports of approximately $2 billion, which have hampered efforts to list MTN in the Nigerian stock market.

However, the company said despite all that, it was still committed to listing in the market and would continue to work towards a successful completion. Shuter said: