JSE-listed MTN expects to report double-digit growth in headline earnings per share (HEPS) for the year ended December 31.
Reported on an International Financial Reporting Standard (IFRS) 16 basis, the group expects a 30% to 50% increase in HEPS to between 438c and 506c for the year under review, compared with the HEPS of 337c in the prior financial year.
Growth of up to 10% is expected for earnings per share (EPS) for the year to between 485c and 534c, compared with EPS of 485c the year before.
Non-operational items negatively impacted on HEPS by 128c a share on a reported IFRS 16 basis, which was adopted on January 1, 2019.
The adoption of IFRS 16 led to a 13% reduction in the reported earnings numbers, arising primarily from the net effects of lower operating lease costs, higher finance costs and higher depreciation charges, the group said in a statement.
On a like-for-like International Accounting Standard (IAS) 17 basis, MTN expects to report growth in HEPS of between 55% and 75% to between 522c and 590c for the 12 months to December 31, while EPS, on an IAS 17 basis, are expected to be between 15% and 25% higher at between 558c and 606c.
On an IAS 17 basis, HEPS have been negatively impacted on by non-operational items in the year under review by 133c apiece.
“The abovementioned 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,” MTN explained.
MTN will release its results on March 11.