MTN tells shareholders to expect big profit jump

MTN has notified shareholders that it expects to report 35% to 45% higher earnings per share, and 12% to 22% higher headline earnings per share than last year.

The network operator said it is finalising its results for the year ended 31 December 2022. The JSE’s listings requirements stipulate that companies must publish a trading statement when reasonably sure their financial results will differ by at least 20% from the prior year.

MTN said its earnings per share (EPS) is expected to be between R2.67 and R3.43 higher than its 2021 financial year.

It noted that last year’s earnings included a loss on deconsolidation of a subsidiary of -R2.62 per share and fair value gains on acquisition or disposal of R0.99 cents.

These are both nil for the 2022 financial year, MTN said.

Its EPS does include impairment losses that mainly relate to investments, goodwill and property, plant and equipment of approximately -R0.44 (2021: -R0.64); an impairment loss on remeasurement of disposal groups of -R0.70 (2021: -R0.02); a net gain on the disposal of SA towers of R0.22 (2021: nil) and the net profit on disposal of property, plant and equipment and intangible assets of R0.09 cents (2021: R0.05 cents).

MTN expects its headline earnings per share (HEPS) to increase by between R1.18 and R2.17.

It said HEPS was negatively impacted by some non-operational and once-off items of approximately -R1.59 (2021: -R1.23).

These include hyperinflation adjustments (R1.25), foreign exchange losses (-R1.81), an IFRS 2 charge arising from the MTN Ghana localisation transaction (-R0.04), divestments (-R0.24), remeasurement of deferred tax asset (-R0.65), and other non-operational items (-R0.10).

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