JSE-listed telecommunications company MTN expects to report a loss a share of between R3.83 and R4.34 and a headline loss a share of between R2.17 and R2.71 for the six months ended June 30.

This compares with earnings a share of R5.11 and headline earnings per share (HEPS) of R5.42 reported for the six months ended June 30, 2023.

The group, which will publish its interim results on or about August 19, points out that HEPS were negatively impacted on by hyperinflation adjustments of 57c, compared with 38c in the prior comparable period; foreign exchange losses of R5.19, compared with losses of R1.69 in the prior period; deferred tax charge/asset reversals of 28c and other nonoperational items of 25c.

"The group anticipates reporting a resilient underlying performance, with pleasing momentum in some key markets. MTN Ghana and MTN Uganda reported strong performance for the first-half of 2024, while we expect reporting results for MTN South Africa that demonstrate encouraging progress in key areas of the business.

"The financial technology platform sustained robust trends in its revenue growth and ecosystem expansion. We have also been encouraged by the progress in cash upstreaming from the markets, including Nigeria, which supported the June 30, 2024, holding company leverage remaining largely stable relative to March 31, " MTN said.

Its first-half of 2024 financial results were, however, negatively affected by macro factors including the further devaluation in the naira against the US dollar.

Nigeria’s financials, although the business posted a strong underlying operational performance in its 2024 interim results release.

Additionally, the translation impact on reporting currency, in rands, arising from the devaluation of most local currencies, particularly the naira in its portfolio against the rand negatively affected its results, as did operational challenges in Sudan owing to the ongoing conflict in the country, it said.

"The naira devaluation drove higher operating and net finance costs for MTN Nigeria, which are expected to impact the group's first-half inancial performance.

"The group continues to progress initiatives to mitigate the negative effects of the macro environment on the business," the company noted.

MTN NIGERIA AND GUINEA-BISSAU
MTN Nigeria has successfully renegotiated with IHS Nigeria to amend the binding commercial terms of the existing infrastructure sharing and master lease agreements.

The revised terms meaningfully reduce the US dollar-indexed component of the leases linked to a discounted US consumer price index (CPI), making the leases majority naira-linked, as well as set a cap for the naira CPI escalator component.

They also remove technology-based pricing, allowing payments for new upgrades based on tower space and power, MTN said.

"Shareholders are further advised that MTN has concluded the sale of small West African subsidiary Spacetel Guinea-Bissau, or MTN Guinea-Bissau, following the receipt of all regulatory approvals."

The disposal to Telecel Group Mobile is in line with the Group’s strategic priority to accelerate portfolio transformation.

MTN has taken steps to ensure a seamless transfer of ownership, which it believes is in the best interests of MTN Guinea-Bissau, its stakeholders and the sector in Guinea-Bissau at large.