MTN expects positive earnings boost

2017-07-27 08:51
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MTN. (Duncan Alfreds, Fin24)

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Johannesburg - Service provider MTN [JSE:MTN]expects to report positive results for the first six months of the year when its full interim results are released next week, it announced on Thursday. 

The company said it expected to report basic headline earnings per share of between R2.10 and R2.30 and basic earnings per share of between R2.80 and R3, in its half-year financial results that will be announced next week. 

This compares with a headline loss per share of R2.71 and attributable loss per share of R3.01 reported in the prior comparable period, after the Nigeria regulatory fine imposed on the company for failure to disconnected unregistered sim cards. 

READ: MTN suffers first financial loss in 20 years

“The negative performance in the prior comparable period was mainly as a result of non-recurring costs, including the Nigeria regulatory fine of 474 cents per share which was fully expensed in prior periods, professional fees related to the fine of 73 cps and losses of 136 cps from MTN’s 51% equity interest in Nigeria Tower InterCo mainly as a result of unrealised losses on US dollar-denominated loans prior to the exercise of the exchange right where MTN exchanged its 51% shares of Nigeria Tower InterCo for an increased equity stake in HIS,” MTN said in statement on Thursday. 

The interim results of the six months ending 30 June 2017 will be announced on August 3 2017.

In March, MTN said 2016 was its “most challenging” year ever as it reported its first annual loss in 20 years, with a headline loss of R1.4bn ($108m), or 77 cents per share, for its financial year ended December 31.

This compared with headline earnings of R13.6bn, or R7.46/share, a year earlier.

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