MTN Group of South Africa Reported a Drop in Its First Half Profit Owing to Strike

MTN Group of South Africa Reported a Drop in Its First Half Profit Owing to StrikeOn Wednesday, MTN Group, the largest mobile phone company of Africa reported a drop in its first half yearly profits. The company's profit dropped 10.3 percent. The slack results also can be partly connected to low handset supply in the South African market owing to the seven week strike by its workers

MTN has its business operations in many of the African countries which include Nigeria. Reportedly the EPS totaled 654 cents for the first half of the year which ended in June as compared to last year same period of 727 cents.

Although the company was hit by a strike that lasted from20 May to 16 July, it still managed to increase the number of its subscriber base by 1.8% to a 28.5million with what the company describes as "attractive promotions and below-the-line campaigns in the prepaid segment".

MTN said that the growth for the prepaid subscriber was 2.7% and reached 23.2million where as for the post-paid it dropped 1.7% to 5.3million owing to challenges posed by a handset supply problem. The revenue generated from the sale of handsets dropped by 27.5%. MTN said that it expects the figures to improve in the remaining half of the year due to changes that the company has initiated in the logistics operations.