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Reported headline earnings per share (HEPS) were 182 cents** compared to a 77 cents** headline
loss per share in 2016 when performance had been impacted by the Nigerian regulatory fine of
500 cents**. MTN had reached an agreement with the Federal Government of Nigeria in June 2016 to
settle the 330 billion naira fine over three years.
For 2017, the board has declared a second half dividend of 450 cents per share, bringing to
700 cents the total dividend for the year, the same as that in 2016. At the discretion of the board
and taking into consideration market conditions, the board anticipates declaring a total dividend
of 500 cents per share for 2018, growing at 10% to 20% over the medium term. The rebasing of the
dividend follows the marked changes in currency exchange rates across many MTN markets. This
will allow MTN to ensure that the dividend is funded from operational cash flows over the medium
term.
Looking forward
MTN Group’s performance and prospects are most sensitive to the macro-economic conditions of its
three largest markets. The Nigerian and South African economies appear to have stabilised and are
possibly in recovery mode, buoyed by a strengthening oil price and greater oil production in Nigeria
and an improved political outlook in South Africa. Iran’s prospects remain uncertain: they depend
substantially on the US Congress resolution on the status of the agreement between Iran and the
P5+1. We remain hopeful that rationality will prevail and that the recognition of the 2016 agreement
between Iran and the five permanent members of the United Nations Security Council and Germany
and the European Union will remain unchanged into the future.
Management understands the importance of ensuring that MTN gets the basics right and keeps a
close eye on the rapidly evolving competitive environment. This fine balance in the allocation of the
group’s time and resources will ensure that MTN remains at the cutting edge of innovation and
delivers a bold new digital world to customers. This is in line with the group’s belief that everyone
deserves the benefits of a modern connected life. I am confident that the group has the momentum
to achieve this, steered by an ethical and effective leadership team.
Evolving our board
Directors who understand the opportunities and risks that the group faces, as well as the need to
create shared value through a stakeholder-inclusive approach, are essential. In 2017, the company
continued to evolve its board of directors. Alan van Biljon retired on 31 December 2017 after many
years of dedicated contribution to MTN, in which he served in various roles including chairing the
audit committee and as lead independent director. I wish to thank him and wish him all the best and
a well-deserved rest in his retirement.
Alan Harper assumed the lead independent director role in May 2017 and will lead the board in any
instances where a conflict of interest arises. In the period ahead, we will continue to make changes to
the board to ensure that while retaining a depth of skills and sufficient institutional memory, we also
refresh it with diverse directors who bring new ideas and perspectives.
To this end, I will chair my last AGM on 24 May 2018 and step down from the board on 31 December
2018. Ahead of that, we will identify a new chairman in the second half of 2018 and work to
ensure a smooth transition. It has been both an honour and a humbling experience to have served
the MTN Group in various capacities since 2001. I wish to thank all the many stakeholders with
whom I have engaged over the years – employees, regulators, customers, governments, suppliers,
investors, communities and the media – for their contribution. I have no doubt that the people of
MTN will continue to strive to make customers’ lives a whole lot brighter, and in so doing, deliver
on the group’s strategy.
MTN Group Limited
Integrated Report 2017
29
Strategic and
financial review