MTN down after Absa Capital note

Comment on this story
JSEPic INLSA The JSE board in Sandton in Johannesburg. Photo: Leon Nicholas.

Johannesburg - Shares of Johannesburg-listed African mobile giant MTN Group edge lower after Absa Capital says it likely lost revenue share to Vodacom in South Africa.

“Expect 3Q13's market share dynamics to continue into 4Q13, with MTN losing service revenue share to Vodacom,” the bank says in a note to clients.

“At current (high) valuation levels, we do however see the regulator's pending MTR decision presenting downside risk.”

Investors are concerned South Africa's regulator will give the nod to lower mobile termination rates (MTR) - what telecoms pay one another to connect calls - also negative for MTN.

However, Absa Capital raises its price target to 222 rand from 210 rand and maintains its “overweight” rating for MTN, Africa's biggest telecom, but No. 2 in its home market behind Vodacom.

MTN shares are down 1.8 percent at 211.05 rand, lagging behind a 0.24 percent decline by the Top-40 index. - Reuters



sign up
 
 

Comment Guidelines



  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.