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Our material issues and their impact in 2016
Here we set out our material issues, assigning numbers to each for easy referencing. The numbers do not
necessarily indicate rankings of relative importance.
Challenging
economic
conditions
•
•
Pressure on MTN revenue and profitability
•
Foreign exchange translation losses on rand-reported results
•
Increased costs resulting from expenses denominated in foreign
currencies and increased cost of debt
•
Reduced ability to remit dividends and repatriate cash from
MTN Nigeria
•
Lower consumer spending
•
Contraction of the Nigerian economy had a knock-on impact on
the rest of West Africa
Increased
competition
and disruption
of traditional
telecoms
business
•
•
Erosion of voice and data-access revenue
•
Higher capital expenditure required to remain competitive
•
Declining return on investment
•
Improvement in network quality and customer service
•
Opportunity to offer additional services and change our business
model
•
Need to secure appropriate spectrum and new technologies
Tough political
environments
and greater
regulatory and
compliance
requirements
•
•
Reputational and relationship risks
•
Continuing to operate in countries where there is civil strife
•
Fines and penalties, more onerous on-boarding subscriber
registration requirements
•
Demand for greater local participation, including stock exchange
listings of operations
•
New taxes and changes in tax legislation
•
Restricted access to spectrum resulting in an increase in rollout costs
•
Enhancing information security
Easing of
sanctions
in Iran
•
•
Enabled repatriation of cash to the Group
•
Opportunity to benefit from increase in economic growth in Iran
Inconsistent
execution
of Group
strategy and
implementation
of regulatory
compliance and
governance
policies by
operations
•
•
Lower-than-expected financial results
•
New senior management appointments
•
Need for better organisational oversight and more diverse skills
•
Need to constantly review business continuity measures
•
Pressure on the Group’s reputation
1
2
3
4
5
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2
3
4
5
MTN Group Limited
Integrated Report 2016
09
WHO WE ARE