MTN share price surges 9% after return to profit
Shares in mobile operator MTN advanced 8.5% in morning trade on Thursday after the group reported a return to full-year profit in 2017.
The group’s shares have endured a torrid time over the past 18 months, having staved off a massive fine in Nigeria, and reporting a first-ever annual loss a year ago.
By 11h00 on Thursday, shares in MTN improved R11.09 or 9.05% to R133.68 on the Johannesburg Stock Exchange, having declined to a year low of R122.50, and R107 in October 2016.
In comparison, shares in rival operator, Vodacom, traded 2.26% higher at R166.69, with the All Share Index up 0.38% to 59,189 points.
MTN on Thursday published its financial results for the year ended December 2017, showing a decline in group revenue to R132.8 billion, from R147.9 billion before; however, operating profit climbed to R20.6 billion, from R14.2 billion in 2016.
Group earnings before interest, taxes, depreciation, and amortisation climbed to R46.95 billion, from R40.75 billion before, with headline earnings per share (HEPS) of 182 cents compared to a 77 cents headline loss per share a year earlier.
The board declared a final dividend of 450 cents per share. This, it said, is in line with the 2017 guidance of a total dividend of 700 cents per share communicated in March 2017.
For South Africa, revenue improved marginally to R42.5 billion, from R41.3 billion, with EBITDA up to R14.7 billion, from R13.5 billion in 2016.
Nigeria, however, was disappointing, with revenue down to R36 billion, from R47.1 billion, and EBITDA down to R14.7 billion, from R13.5 billion before.
MTN also recorded good growth in the average spend of its local user base, with ARPU increasing from R82.59 in 1Q16, to R96.80 in 4Q17.
Read: MTN plans to raise R6 billion from the sale of shares in its Nigerian business: report
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