MTN CEO talks dividend suspension amid COVID-19 uncertainty, asset realisation programme

MTN, a leading telecommunications company, has recently announced a strong set of financial results, showcasing the company's resilience and ability to navigate through challenges. One of the key highlights of the report was the decision to suspend the final dividend for 2020. Ralph Mupita, CEO at MTN, explained that this move was driven by caution surrounding uncertainties brought about by the COVID-19 pandemic. The company had also faced challenges with asset realization programs and upstreaming from operations, particularly in Nigeria. Despite these obstacles, MTN remains focused on strengthening its balance sheet and capital allocation priorities. The decision to suspend the dividend was supported by the board as a strategic move in the best interest of the company. Looking ahead, Mupita expressed optimism about the progress of the asset realization program, citing improved market conditions and confidence in achieving set targets. He also touched upon the situation in Nigeria, indicating cautious optimism about the clearing of the Forex backlog and potential interventions by the central bank to boost foreign exchange inflows. The overall operational performance of MTN has been robust, with positive momentum continuing into the first two months of 2021.