MTN expects its results for the first half of the year to be hit hard by the NGN330 billion ($1.67 billion) fine imposed by Nigeria’s regulator, coupled with the an underperformance of its Nigerian and South African units.

The company said it will report negative basic headline earnings per share (HEPS) and basic earnings per share (EPS) for HY2016.

Its results for the six months to end June 2016 will be published on 5 August.

Foreign exchange losses in a number of operations, losses from joint ventures and associates as well as hyperinflation adjustments at MTN Irancell are also expected to have a negative impact on HEPS and EPS, Africa’s largest operator group said in a statement.

MTN explained its Nigerian unit’s performance was impacted when it was asked by the Nigerian Communications Commission to disconnect 4.5 million subscribers in February 2016 amid terrorism concerns.

Failure to do so in time had resulted in a $5.2 billion fine, which was eventually reduced to $1.67 billion.

“The withdrawal of regulatory services which were re-instated on 15 March 2016 with approval for promotions and price plans granted in early May 2016″ did not help the matter, MTN said.

Meanwhile, MTN South Africa is expected to report a decline in its EBITDA margin, impacted by a marked increase in handsets sold during HY2016, it added.

A further statement will be issued once MTN obtains a “reasonable degree of certainty” as to the range within which the HEPS and EPS are expected to be finalised.

The statement was published in accordance with a Johannesburg stock exchange regulation that asks firms to give notice if they think their financial results will differ by at least 20 per cent from those of the previous corresponding period.

Back in March, MTN said its 2015 results reflected “the challenging operating environment the business experienced”, including its woes in Nigeria.

Its performance was “lower than expected”, with macroeconomic conditions, currency issues, competition, and “operational challenges” in some markets also taking their toll.

The company reported a profit of ZAR20.2 billion ($1.29 billion) for the year, down from ZAR32.08 billion, on revenue of ZAR147.06 billion, up from ZAR146.93 billion. It noted a ZAR9.29 billion provision for the fine.