The MTN Group has released a trading update, notifying shareholders of a projected decrease of over 100% in its earnings per share (EPS) for the fiscal year ending December 31, 2024.
Additionally, the company anticipates a decline in headline earnings per share (HEPS) ranging from 59% to 79%. However, MTN is optimistic about reporting solid underlying performance in the 2023/24 financial year.
The group expressed encouragement over the relative stability of key macroeconomic factors in the latter half of FY24, including inflation and foreign exchange rates in some of its significant markets.
Shareholders were informed that the expected EPS is anticipated to fall between -781 and -736 cents. Compared to the reported EPS of 227 cents for the previous financial year ending December 31, 2023, this results in an expected range of -554 to -509 cents for FY24.
In terms of HEPS, MTN projects a range between -186 and -249 cents, which adjusts to an anticipated range of 66 to 129 cents for the financial year.
Several factors contributed to this difference in HEPS, including:
- Impairment losses primarily related to investments, goodwill, and property, plant, and equipment, especially in Sudan, amounting to approximately -578 cents (compared to -40 cents in FY23).
- An impairment loss concerning the measurement of disposal groups of about -8 cents (versus -50 cents in FY23).
- A net loss from selling investments in joint ventures, associates, or subsidiaries, estimated at around -36 cents (with no loss recorded in FY23).
- A net loss on selling property, plant, equipment, and intangible assets of about -7 cents (compared to -1 cent in FY23).
The MTN Group also noted that hyperinflation adjustments, foreign exchange losses, a deferred tax charge, and other non-operational items have adversely affected HEPS.
Focusing on MTN South Africa, the group foresees an improvement in the business’s profitability trajectory, particularly in the latter half of the financial year.
In early trading on Thursday, MTN’s share price was nearly 4% higher.
