MTN’s Dividend Exceeds Analyst Estimates; Posts Record Loss

MTN Group beat dividend estimates, even after Africa’s biggest wireless company by revenue posted a record loss because of currency devaluations.

The Johannesburg-based company said it would pay a dividend of R3.45 a share, compared with the R3.35 -per-share forecast in a survey of Bloomberg analysts.

MTN posted a loss of R9.59 billion ($526 million) for the year ended December 31. That compares with a R3.87 billion loss forecast by four analysts surveyed by Bloomberg.

Africa’s biggest wireless carrier by revenue, which has businesses across 18 markets, has been struggling to deal with currency devaluations especially in Nigeria, which accounts for a third of its sales.

MTN reported revenue of R188 billion, compared with an estimate of R185 billion.

MTN’s shares rose as much as 3.4% in early Johannesburg trading, after the company said it targets paying a higher dividend of R3.70 a share for the current financial year.