Source: My Broadband https://mybroadband.co.za/news/business-telecoms/408396-mtn-takes-major-pain.html
MTN has released a trading statement for the six months ended 30 June 2021 to notify shareholders about a major drop in expected earnings for the company.
The company said it is expecting a decrease in earnings per share of between 75% and 85% — or R5.06 to R5.73 — down from the earnings per share of R6.74 for the corresponding six-month period ended 30 June 2020.
Excerpt
MTN also reported that a magistrate has recommended to dismiss a case brought against two of its overseas operations for allegedly supporting the Taliban by making payments to the terrorist group to ensure the protection of its infrastructure.
The civil damages case was brought against MTN Dubai and MTN Afghanistan, and MTN filed a motion to dismiss the case in 2020.
MTN said it requested that the court dismiss the complaint for two independent reasons:
- The court lacks jurisdiction over MTN Dubai and MTN Afghanistan
- The complaint does not allege any conduct by MTN Dubai or MTN Afghanistan that violated the US Anti-Terrorism Act.
“MTN is pleased to report that on Friday evening, 30 July 2021, the magistrate judge to whom the case had been referred made a recommendation to the district judge presiding over the case to grant the motion to dismiss for all defendants in the case,” the company said.
“The magistrate judge further concluded that the court did not have jurisdiction,” it said.
MTN noted that under the US court’s procedures, the plaintiffs are permitted to file objections to the report with the district judge, and MTN Dubai and MTN Afhanistan will have an opportunity to respond.
“MTN is in the process of studying the full report with its legal counsel, however, the company is pleased with this positive development supporting MTN’s strong defence and arguments with regards to its motion to dismiss.”
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