MTN Group President and Chief Government Officer Ralph Mupita. Picture supply: Graphic
South African cell community operator MTN Group is dealing with an investigation by a U.S. Division of Justice grand jury into its conduct and that of its former subsidiary in Afghanistan and an Iranian cellular phone service it partly owns, the corporate mentioned.
The information and a slight downward revision of its medium-term service income outlook for its home market despatched its shares tumbling 9% on Monday, overshadowing outcomes displaying it made a half-year revenue following a loss a yr earlier.
Group CEO Ralph Mupita advised reporters that Africa’s largest telecoms operator had been knowledgeable by its exterior U.S. counsel of the DOJ grand jury investigation, including that it was cooperating and voluntarily responding to requests for data.
Mupita declined additional touch upon the case
MTN faces different ongoing legal cases in the USA filed on behalf of American service members and civilians who have been injured or killed in Iraq and Afghanistan between 2005 and 2010, who accuse it of violating the U.S. Anti-Terrorism Act.
“The plaintiffs’ complaints allege that MTN supported anti-American militias in Iraq and Afghanistan via its participation in Irancell,” the corporate mentioned in a press release,.
MTN owns 49% of Irancell.
“Jurisdictional discovery within the instances, ordered in July 2023, has now closed and the plaintiffs filed an amended criticism on 6 August 2025,” the corporate mentioned.
“The amended criticism now contains extra claims towards MTN, that are much like these asserted within the three different pending ATA (U.S. Anti-Terrorism Act) instances during which MTN is concerned. MTN will file a Movement to Dismiss the amended criticism.”
MTN shares fell as a lot as 9% earlier than closing down 8.4%.
“(The) shares have executed very nicely coming into these (half-year) outcomes so a part of the selloff may be revenue taking by short-term buyers given the U.S. investigations could possibly be an overhang,” mentioned Peter Takaendesa, Chief Funding Officer at Mergence Funding Managers.
MTN can be dealing with challenges in rising service income in its dwelling market resulting from pricing pressures, intense competitors and weak shopper spending.
Primarily based on assumptions relating to market circumstances and outlook in South Africa, it revised its medium-term steering for service income progress in South Africa to low to mid-single digits from mid-single digits.
It reported headline earnings per share of 645 cents within the six months to June 30, in comparison with a headline lack of 256 cents a yr earlier, as macroeconomic circumstances, inflation and international alternate charges in Nigeria and Ghana confirmed improved stability.
Group service income grew by 23.2% to 105.1 billion rand ($5.97 billion) as information and fintech revenues elevated by 36.5% and 37.3%, respectively.
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