MTN expects to make good on Nigeria losses in interim results

Johannesburg - Service provider MTN [JSE:MTN] expects to report positive numbers in its interim financial results for the six months to end-June 2017.

The telecommunications provider projects basic headline earnings per share of between R2.10 and R2.30, and basic earnings per share of between R2.80 and R3.

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 regulatory fine imposed on the company by Nigeria for failure to disconnect unregistered SIM cards.

In March MTN said that 2016 had been 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 to end-December 2016.

This compared with headline earnings of R13.6bn, or 746c/share, during the same period the year before.

During the period the company also reported that its earnings before interest, tax, depreciation and amortisation (Ebitda) decreased by 13.2% to R51.9bn, with the Ebitda margin also falling by 5.5 percentage points to 35.4%.

Data revenue, which sees a reported increase by all telecommunications providers in the country, is also expected to the spur the growth of results to be released on Thursday. 

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