Home Technology Nigeria helps drag MTN into a large loss

Nigeria helps drag MTN into a large loss

by Neo Africa News
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Nigeria helps drag MTN into a massive lossMTN Group is going by way of an exceptionally troublesome patch. The pan-African telecommunications operator warned on Wednesday that it expects to report a large half-year much less when it publishes its interim monetary outcomes to June subsequent month.

The warning – of a headline lack of as a lot as R2.71/share – is especially the results of its ongoing troubles in Nigeria, the place the collapsing naira is strangling the corporate, regardless of an inexpensive underlying efficiency.

The losses come regardless of enhancements in some key markets, together with Ghana and Uganda. South Africa, too, is predicted to “encouraging progress in key areas of the enterprise”.

Interim group Heps – headline earnings per share – might be negatively impacted to the tune of R6.29 by a variety of non-operational gadgets, together with:

  • Overseas change losses of -R5.19 (2023: -R1.69), which embrace a naira depreciation affect of -R3.89 (2023: -R1.23);
  • Hyperinflation changes of -57c (2023: -38c);
  • Deferred tax cost/asset reversal of -28c (2023: nil); and
  • Different non-operational gadgets of -25c (2023: nil).

“The group anticipates reporting a resilient underlying efficiency, with pleasing momentum in some key markets,” MTN stated in a buying and selling replace revealed after the market closed in Johannesburg on Wednesday.

In the identical replace, MTN stated its Nigerian operation has concluded the renegotiation of tower lease agreements with IHS Towers and American Tower Company.

Revised phrases

“The revised phrases meaningfully scale back the US dollar-indexed part of the leases linked to a reduced US client value inflation fee, making the leases majority naira-linked, in addition to set a cap for the naira CPI escalator part. In addition they take away technology-based pricing, permitting funds for brand new upgrades based mostly on tower house and energy,” MTN stated.

The group additionally introduced that it has offered its subsidiary in Guinea-Bissau, a small market in West Africa. It was purchased by Telecel Group. Phrases weren’t disclosed.  – Âİ 2024 NewsCentral Media

Learn subsequent: Extra ache for MTN in Nigeria



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