MTN is expecting a substantial drop in earnings and profits following the significant devaluing of the Nigerian naira. <\/p>\n\n\n\n
In a trading statement for the full year ended 31 December 2023 (FY23), the group said that a challenging operating environment severely dampended its resilient underlying operational performance over the year. <\/p>\n\n\n\n
The sharp devaluation of the naira against the US dollar impacted MTN Nigeria’s financials, mainly through higher operating and net costs for MTN Nigeria. <\/p>\n\n\n\n
The foreign exchange losses in MTN Nigeria\u2019s finances are estimated to be 593 cents (2022: 52 cents) for the period. <\/p>\n\n\n\n
The group thus expects its earnings per share (EPS) to decrease between 70% and 90% (-750 cents to -964 cents) to a range of 107 cents to 321 cents for FY 23.<\/p>\n\n\n\n
EPS also includes: <\/p>\n\n\n\n
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The group also expected a drop in profits, with headline earnings per share (HEPS) dropping between 60% and 80% (-692 cents to -923 cents) to a range of 231 cents to 462 cents. <\/p>\n\n\n\n
HEPS was negatively impacted by some non-operational items of approximately -889 cents (2022:
-159 cents) for the year, including<\/p>\n\n\n\n
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Financials<\/strong><\/td>| FY 23 expected range (R’cents)<\/strong><\/td> | Expected (decrease) (%)<\/strong><\/td> | Expected (decrease) (R’cents)<\/strong><\/td><\/tr> | EPS<\/strong><\/td> | 107 – 321<\/td> | (90) to (70)%<\/td> | (964) to (750)<\/td><\/tr> | HEPS<\/strong><\/td> | 231 – 462<\/td> | (80) to (60)%<\/td> | (923) to (692)<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n | Despite these issues, the group expects to declare an interim dividend in line with the guidance of a minimum ordinary final dividend of 330 cents per share for FY23. <\/p>\n\n\n\n The group did, however, state that its figures for the comparative FY22 figures, which have been altered following changes to forex requirements in Nigeria, are not included in these estimates. <\/p>\n\n\n\n The group expected to release its results for FY23 on roughly Monday, 25 March 2024. <\/p>\n\n\n\n \n\n\n\n |