Mobile operator MTN Group said in a trading statement on Tuesday (11 February), that it expects headline earnings per share to climb between 30% and 50% for the year ended December 2019.
The group said it expects HEPS of between 438 cents and 506 cents for the period, compared with HEPS of 337 cents for the prior financial year.
The change in earnings per share (EPS) is expected to be between 0% and 10%, or a figure of between 485 cents and 534 cents compared with EPS of 485 cents for the prior financial year, it said.
MTN said it has adopted the new accounting standard on leases, IFRS 16, with effect from 1 January 2019 and, as permitted by the standard, comparative numbers have not been restated and remain on the previous accounting treatment of operating leases in accordance with IAS 17.
It said that on a like-for-like basis (using IAS 17 accounting standards for both the 2018 and 2019 financial years), they will rise by as much as 75%, it said.
It said that on a like-for-like IAS 17 basis, HEPS are likely to be between 55% – 75% higher, while EPS will likely improve by 15% – 25%.
“HEPS were negatively impacted by non-operational items in the financial year ended 31 December 2019 totalling approximately 133 cents per share, on an IAS 17 basis (2018: 215 cents per share, on an IAS 17 basis),” it said.
MTN said it will detail the relevant adjustments used to arrive at the pro forma information when its full-year results are published on 11 March 2020.
The above mentioned non-operational items for the year include costs relating to the Nigerian regulatory fine interest, hyperinflation adjustments, net foreign exchange losses, impairment on Iran receivables and the impact of divestments made during the year, it said.