MTN shares soar as company predicts substantial earnings growth in 2022
South African telecommunications giant MTN has informed its shareholders that it expects to report a 35% to 45% increase in earnings per share (EPS) and a 12% to 22% increase in headline earnings per share (EPS) for the year ended 31 December 2022. According to MyBroadband, the company is finalising
South African telecommunications giant MTN has informed its shareholders that it expects to report a 35% to 45% increase in earnings per share (EPS) and a 12% to 22% increase in headline earnings per share (EPS) for the year ended 31 December 2022.
According to MyBroadband, the company is finalising its financial results for the year and has stated that its EPS is expected to be between R2.67 and R3.43 higher than the previous year.
MTN's earnings for the previous year included a loss on the deconsolidation of a subsidiary, which will not be included in the current year's earnings. However, its EPS includes impairment losses primarily related to investments, goodwill, property, plant, and equipment.
Acquah Nana Yeboah
On the other hand, the company expects its headline earnings per share (HEPS) to increase by between R1.18 and R2.17. The HEPS was impacted negatively by some non-operational and one-off items, such as hyperinflation adjustments, foreign exchange losses, and other non-operational items.
MTN's trading statement comes after the Johannesburg Stock Exchange listing requirements, which require companies to publish a trading statement if they expect their financial results to differ by at least 20% from the previous year.
The company has not provided further details on the reasons behind the expected increase in earnings per share and headline earnings per share. However, MTN's positive performance is likely to boost investor confidence in the company's future prospects.
