MTN Group is going by means of an exceptionally troublesome patch. The pan-African telecommunications operator warned on Wednesday that it expects to report an enormous 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 principally the results of its ongoing troubles in Nigeria, the place the collapsing naira is strangling the corporate, regardless of an affordable underlying efficiency.
The losses come regardless of enhancements in some key markets, together with Ghana and Uganda. South Africa, too, is anticipated 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 spread of non-operational gadgets, together with:
- Overseas trade losses of -R5.19 (2023: -R1.69), which embody a naira depreciation impression 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 printed 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 cut back the US dollar-indexed element of the leases linked to a reduced US shopper worth inflation charge, making the leases majority naira-linked, in addition to set a cap for the naira CPI escalator element. In addition they take away technology-based pricing, permitting funds for brand spanking new upgrades based mostly on tower area 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. – © 2024 NewsCentral Media
