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MTN warns of lower earnings

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 29 Jul 2015
Forex movements are expected to have a negative impact on MTN's earnings.
Forex movements are expected to have a negative impact on MTN's earnings.

MTN has warned shareholders it expects a decrease of between 10% and 15% (between 656c and 620c) in basic headline earnings per share, as well as a decrease of between 10% and 15% (between 658c and 621c) in attributable earnings per share for the period ended 30 June 2015.

This is in comparison to previously reported basic headline earnings per share and attributable earnings per share of 729c and 731c per share, respectively, for the period ended 30 June 2014.

The mobile operator says it will announce its result for the six-month period ended 30 June on 5 August.

"Shareholders are, therefore, advised that MTN expects adverse exchange rate (and cross rate) movements [to have] impacted both the rate at which revenues and EBITDA were translated, as well as resulting in increased forex losses when compared to the prior comparable period," the company says in a statement.

Listed entities are not obliged to inform shareholders of a change in earnings if the expected differences are less than 20%, but MTN chose to publish a voluntary trading statement.

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