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MTN expects massive earnings decline


MTN expects a huge decrease in earnings for the year ended 31 December, and this is not taking into account its massive Nigerian fine.
Although discussions around the fine are still outgoing, there remains some uncertainty as to how big it will be, should an out of court settlement be reached.
However, notwithstanding uncertainty of the outcome of the various engagements relating to the fine, MTN has warned shareholders that, excluding the fine, it is expecting to report a decrease of at least 20% in basic headline earnings per share (HEPS).
This equates to a reduction of at least 307 cents for the year ended 31 December 2015 when compared with the previously reported HEPS (FY2014) of 1 536 cents.
MTN states that the negative earnings performance has been impacted by a number of factors with the operational underperformance in Nigeria, resulting from the subscriber disconnections and the withholding of regulatory services, being a key contributor to this.