- Earnings per share expected to plunge by 845.75%
- Drop attributed to currency depreciation
Harare – Airtel Networks Zambia, a provider of prepaid, postpaid and mobile services anticipates a wide loss for the half year period ended 30 June 2020 as a result of the adverse operating environment that has been exacerbated by the COVID-19 pandemic.
In an earnings guidance publication, the company said, “In accordance with the Lusaka Securities Exchange (“LUSE”) Listings Requirements, the Board of Directors of Airtel Networks Zambia Plc (“Airtel” or “the Company”) hereby advises the Shareholders of the Company that the Earnings per Share for the half-year ended 30 June 2020 is expected to be approximately 845.75% lower than the half-year ended 30 June 2019.”
The drop in the EPS is primarily attributed to currency depreciation across the financial year which has had a noteworthy impact on the Company’s income statement.
For the financial period ended 31 December 2019, the company recorded a profit of K15.743 million from K64.859 million registered in 2018.
The key reason for low profit for the year 2019 was the devaluation of Kwacha.
Additionally, interest expense on lease liabilities and borrowings increased to K183.662 million from K108.817 million in 2018, driven by increase in principal amounts.
The Company expects its results for the half-year ended 30 June 2020 to be released on or about Friday 25th September 2020.
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