MTN's stock closed 1.06% higher - at R217.50 - last night, despite an ongoing strike in SA and diesel disruptions in its largest market of Nigeria.
MTN's Nigerian operation, its largest with 59.9 million subscribers as of the end of December, went through a crippling fuel crisis towards the end of last month. In addition, South Africa - with 28 million users - has been beset by strike action by call centre staff.
Because of the prolonged strike, MTN SA CEO Ahmad Farroukh yesterday said a legally binding arbitration process "may be the only practical solution to this stalemate".
The strike, which started almost two weeks ago, has led to the closure of MTN's call centres and disrupted other services centres, including retail stores and the high-value repair centre. The strike is being led by the Communication Workers Union, which initially wanted a 10% salary hike, as well as an 8% bonus.
MTN is offering a 4% bonus in December 2015 and a second payment of 8.33% in March 2016. MTN maintains this offer exceeds the original staff demand for an 8% bonus payment.
Yesterday, SA human resources chief Themba Nyati said the company recorded a 97% attendance rate among its staff, with only about "five members" protesting outside its head office in Johannesburg. However, this was disputed by the union, which accused the company of lying and said the strike was ongoing, and fully supported by staff.
Despite the woes facing the company, its share price has not taken a big hit, although it does reflect some jitters. The stock is 5.14% down over the past week, and 4.73% lower over a 30-day period, although the JSE's all-share index has also been on a decline over the same period.
Year-on-year, the share price has dropped 3.77%, but it is up 4.26% based on the year-to-date. MTN, which closes its half-year at the end of this month, has a market capitalisation of R401.8 billion.
In the year to December, its revenue was up 6.4% to R146.2 billion, and headline earnings per share came in at 1 536c, an 8.9% gain. However, stripping out currency fluctuations, revenue only grew 3%.
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