Mobile operator MTN says that earnings could rise by as much as 35% in a trading statement for the year ended December 2021.
The group, which boasts in excess of 272 million customers in 20 markets largely in Africa and the Middle East, said it anticipates an increase in headline earnings per share (HEPS) of between 25% and 35% (or 187 cents to 262 cents).
Considering the HEPS of 749 cents for the corresponding financial year ended December 2020, this translates into a range of 936 cents to 1,011 cents for the year ended December 2021.
Included in HEPS are the negative impacts of a number of non-operational and once-off items with a net total of approximately 123 cents (2020: 128 cents), it said.
These include items largely relating to hyperinflation excluding impairments (42 cents); foreign exchange losses (111 cents); other non-operational items (30 cents) and notable donations related to Covid-19 support for the Africa Centre for Disease Control and
Prevention (CDC) and the Coalition Against Covid task force in Nigeria (24 cents).
MTN said it expects to report a decrease in earnings per share (EPS) of between 15% and 25% (or 142 cents to 237 cents). This translates into a range of 710 cents to 804 cents for the year ended December 2021.
EPS includes impairment losses of approximately 64 cents (2020: 61 cents) that relate mainly to MTN Yemen, largely non-cash losses from the deconsolidation of subsidiary MTN Syria of approximately 262 cents, and fair value gains on acquisition or disposal totalling 99 cents.
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