MTN to report profit boost amid favourable foreign exchange rate movements

Image: NADINE HUTTON

Africa’s largest mobile operator, MTN, expects profits to double in its year to end-March after benefiting from foreign exchange gains during the period.

Headline earnings per share (Heps) is expected to be at least 100% higher in its six months to end-June than the 195c previously, the group said. Heps is the main profit measure in SA and strips out certain one-off items to give a better indication of the underlying performance of a business.

MTN had reported in its six months to end-June 2019 that its foreign exchange losses had surged by more than three quarters to about R1.06bn, partially due to a weaker rand, which resulted in losses related to its US dollar debt.

It also faced foreign exchange losses related to the redemption of preference shares in Nigeria, which refers to a company repurchasing shares.


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