MTN expecting a leap in headline earnings

Telecoms giant MTN [JSE:MTN] expects headline earnings per share for the year ended December 2019 to increase by between 30% and 50%, it said in a trading statement on Tuesday. 

It has adopted a new financial reporting system from 1 January 2019, which it expects to result in a 13% downward adjustment, it said. 

This also comes as MTN undertakes several major projects, including the introduction of a mobile money service in South Africa with Ubank, and the deepening of its investment in the Nigerian market by over R20 billion, Fin24 previously reported.

The company said it expected headline earnings per share of between 438 cents and 506 cents in 2019, compared with HEPS of 337 cents for the prior financial year. .

Final results would be announced early next month, it added. 

The trading statement said HEPS were impacted by non-operational items including costs related to a Nigerian regulatory fine, hyperinflation adjustments, net foreign exchange losses and the impact of divestments made during the year.

On Tuesday afternoon, the MTN share closed up 0.34% at R831.10 per share.

ZAR/USD
16.92
(-0.71)
ZAR/GBP
21.32
(-0.58)
ZAR/EUR
19.08
(-0.52)
ZAR/AUD
11.74
(-0.32)
ZAR/JPY
0.16
(-1.06)
Gold
1796.49
(-0.39)
Silver
18.55
(-0.59)
Platinum
827.00
(-0.78)
Brent Crude
42.31
(-2.17)
Palladium
1939.32
(-0.32)
All Share
55787.90
(-0.15)
Top 40
51536.91
(-0.04)
Financial 15
10339.64
(+0.63)
Industrial 25
77428.31
(-0.10)
Resource 10
52587.29
(-0.39)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1881 votes
I am taking a hit, but should be able to recover in the next year
23% - 2467 votes
My finances have been devastated
34% - 3673 votes
It's still too early to know what the full effect will be
25% - 2636 votes
Vote