By Jaime Llinares Taboada

MTN Group Ltd. said Wednesday that its net profit increased 87% in 2020, but that it won't pay a final dividend as debt remains high.

The South Africa-based telecommunications group made a net profit of 17.02 billion South African rand ($1.11 billion) last year, up from ZAR9.10 billion in 2019.

Headline earnings per share came in at ZAR7.49, meeting the company's own guidance of ZAR7.02-ZAR7.96.

MTN suspended the final dividend, after not having paid an interim distribution. This compares with a total payout of ZAR5.50 in 2019.

The group said uncertainties around cash upstreaming from Nigeria, timing of asset realisation programme proceeds, and Covid-19 impacts haven't materially improved, resulting in leverage remaining above targets.

MTN expects to pay at least ZAR2.60 a share in respect of 2021 through a final dividend, with no interim distribution, it said.

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

(END) Dow Jones Newswires

03-10-21 0121ET