MTN returns to profit

MTN’s share price was little changed from Friday’s closing price of R134.75 after it said on Monday morning it expected to report a return to profit.

MTN said its results for the year to end-December, scheduled for release on March 8, would show a return to profit for both basic and headline earnings per share (HEPS).

In the prior year’s results, MTN reported a headline loss per share of 77c after booking several one-off costs, including R10.5bn for the fine it received from the Nigerian government for ignoring repeated requests to identify its customers so as to help the country’s crackdown on Boko Haram militants.

Despite the accounting loss reported for its 2016 financial year, MTN paid a R4.50 final dividend. It maintained its interim dividend at R2.50 in August.

MTN posted interim HEPS of R2.17 for the six months to end-June — from a headline loss per share of R2.71 for the matching period.

On December 28, MTN said a R6bn profit it had booked in its interim results for the sale of its 51% stake in Nigeria Tower Interco would be cut by R2.8bn in its final results.

Credit: Reuters