MTN issues H12020 positive earnings guidance

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  • Headline earnings per share expected to grow by between 115% and 125%
  • Earnings per share expected to grow by between 160% and 170%

Harare – One of South Africa’s telecom giant Mobile Telephones Network (MTN) expects a growth in profit for the six months period ended 30 June 2020.

In a trading statement MTN said, “Headline earnings per share (“HEPS”) growth is expected to be between 115% and 125% (or 224 cents to 244 cents). Considering the HEPS of 195 cents for the corresponding six-month period ended 30 June 2019, this translates into a range of 419 cents to 439 cents.”

The group added that HEPS benefited from non-operational items for the six months ended 30 June 2020 totaling approximately 46 cents per share (June 2019: 55 cents negative impact on HEPS) of which more than half related to foreign exchange gains.

MTN also expects to report growth in earnings per share (“EPS”) of between 160% and 170% (or 406 cents to 432 cents). Considering the restated EPS of 254 cents for the corresponding six-month period ended 30 June 2019 (restatement explained further below), this translates into a range of 660 cents to 686 cents for the six-month period ended 30 June 2020.”

The group said EPS includes the benefit from gains amounting to 341 cents on the disposal of the ATC Uganda and ATC Ghana tower joint ventures as announced in March 2020 (2019: includes 74 cents benefit from gains on disposal).

MTN will announce its results for the six months period on or about 6 August 2020.

Meanwhile, the group highlighted that in order to maintain and sustain its financial position and a healthy liquidity position, it will not declare a 2020 interim dividend in the context of COVID-19 impacts and the material uncertainties these present.

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