Finance

MTN Needs to list on Nigerian Bourse – Minister

Published

8 years ago

February 22, 2017

MTN Needs to list on Nigerian Bourse

The Minister of Communications, Adebayo Shittu, has urged MTN Nigeria to list its shares on the Nigerian Stock Exchange, describing it as important for the company.

MTN, which is Africa’s biggest mobile phone operator, had said it aimed to list its Nigerian unit on the local bourse but has given no date.

“I want to appeal to you that you do the utmost and do the needful to ensure that you get onto the Nigerian Stock Exchange,” Shittu told MTN executives at a company event.

Recently, there were indications that the MTN Group Limited might put off plans to list its Nigerian operation until 2018 as the telco was working to resolve a regulatory dispute.

“It’s a work in progress and hopefully within the 12 to 18 month period, we will be able to do it,’’ MTN Chairman and Acting Chief Executive Officer, Phuthuma Nhleko, had said at the annual meeting of the World Economic Forum in Davos, Switzerland.

He was quoted as saying, “Regulatory issues need to be resolved, and the macro conditions need to have improved.”

MTN agreed to list the unit in Nigeria as part of the settlement of a N330bn ($1bn) fine imposed by the government for missing a deadline to disconnect unregistered subscribers. It said in July that the listing would take place in 2017, subject to market conditions. Since then, a senator’s allegations that it moved $14bn out of the country had threatened to delay the process.

“We’ve always intended to list – we have reaffirmed that with the government,” said Nhleko, who will revert to his previous role as non-executive chairman when the new Chief Executive Officer, Rob Shuter, arrives in March. “Clearly, we can only list when the conditions are conducive,” he added.

MTN shares have lost more than a third of their value since the fine was handed down in October 2015, and the company has overhauled its management and toughened up its approach to regulators as a result.

The wireless operator had about 235 million customers across 22 countries in Africa and the Middle East as of end September.

In July, MTN appointed units of Citigroup and Standard Bank to advise it on the Nigeria listing.

MTN Group had said it expected to report a full-year loss due to a $1bn regulatory fine in Nigeria and for under-performance both in Nigeria and South Africa.

It said the net effect of the Nigerian fine for the year ended December was a negative impact of 474 cents per share.

MTN is expected to issue a further trading statement on the likely range within which its headline loss is expected.

Underlying operational results for full-year 2016 were also affected by fees incurred for a planned listing in Nigeria.

The result also showed MTN under-performance of its units, both in Nigeria and South Africa in the first half of 2016.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Finance

VFD Group Plc Eyes N1.05 Billion Net Profit as Q4 Earnings Forecast Hits N16.12 Billion

Published

18 hours ago

September 11, 2024

Samed Olukoya

VFD Group Plc, an industry-agnostic proprietary investment company with a portfolio of over 40 businesses across various sectors and geographies, has projected to earn N1.05 billion in the fourth quarter of 2024.

This was revealed in a financial projection statement signed by the Director of Finance, John Okonkwo, and Group Managing Director, Nonso Okpala.

According to the statement, gross earnings is projected to hit N16.12 billion in the period ending December 31, 2024.

Investment and similar income is expected to contribute N15.1 billion while investment expenses are projected at N10.42 billion.

This is expected to result in a net investment income of N4.68 billion.

Also, other income sources are expected to bring in N1.02 billion to take the total operating income to N5.7 billion.

However, the company is projected to spend N3.98 billion as operating expenses.

This includes personnel expenses of N1.09 billion, depreciation and amortization costs of N534.82 million and other operating expenses amounting to N2.35 billion.

Net impairment charge of N216.74 million was expected while net operating income is expected to stand at N5.49 billion.

VFD Group estimates its profit before tax will reach N1.51 billion, with an income tax expense of N452.67 million, leaving a profit of N1.05 billion for the period.

The company’s cash flow projections also paint an optimistic picture. Net cash generated from operating activities is expected to be N3.16 billion, while cash used in investing activities is forecasted at N6.4 billion.

On the financing side, the group projects cash generation of N8.81 billion, leading to a net increase in cash and cash equivalents of N5.57 billion.

By the end of Q4, cash reserves are expected to rise to N9.86 billion from N4.28 billion at the beginning of the quarter.

Although these numbers are projections, the forecast indicates VFD Group’s ability to manage its finances effectively in the face of economic uncertainties.

Banking Sector

Zenith Bank Extends Public Offer and Rights Issue by Two Weeks

Published

2 days ago

September 10, 2024

Investors King

Zenith Bank Plc on Monday announced that it has obtained regulatory approval to extend its public offer and rights issue by two weeks.

In a statement released via the Nigerian Exchange Limited (NGX), the leading financial institution said its offers for both existing shareholders and new investors have been extended to September 23, 2024, from the initial closing date of September 9.

The bank attributed the extension to the nationwide protest that began on August 1, the same day the offers were opened.

Zenith Bank stated that the extension will provide shareholders with more opportunities to take advantage of the rights issue and allow the general public ample time to subscribe to the public offers.

Banking Sector

Unity Bank Projects N27b In Q4 Earnings, Targets N4b Profit

Published

2 days ago

September 10, 2024

Investors King

Unity Bank Plc has projected gross earnings of N27 billion and a Profit After Tax of N4 billion in Q4, 2024, in its latest earnings forecast released to the Nigerian Exchange Group.

Although the projected gross earnings represent a marginal increase from the N26 billion projected for Q3 2024, the lender continues to maintain a profitable outlook, with pre-tax profit expected at N4.2 billion.

An analysis of the earnings forecast shows that the lender also expects interest income to rise from N23 billion to N24.5 billion, with net revenue expected to rise marginally by 1.0% to N7.2 billion within the quarter compared to N6.5 billion in Q3, 2024.

Net operating income is projected at N12 billion, while cash flow from financing activities is projected to rise to N481.4 billion from N353.6 billion, a 1.3% projected increase on a quarter-on-quarter basis. This projected growth in cash flow from financing activities continues to reflect the lender’s growing liquidity position which is essential for sustained business operations.

The lender said it expects to cover the milestones with a consistent optimistic outlook in its projection, barring any significant changes in the operating environment, under which the assumptions were made.

The lender noted that it will continue to deliver top-notch customer-centric products and services, especially in the digital lending space following the roll-out of enhanced platforms and channels for superlative customer experiences.

Analysts are of the view that the Q4 forecast reflects a steady growth trajectory on the back of key performance indicators and strategic repositioning to hedge the challenging market conditions.