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MTN Group has issued an updated trading statement relating to the financial year ended 31 December 2016.
This is the second trading statement relating to the results that are currently being finalised and will be announced on 2 Mrch 2017.
Shareholders are advised that MTN expects to report a basic headline loss per share of between 74 cents and 81 cents and a basic loss per share of between 137 cents and 151 cents.
In the prior year comparable period MTN reported headline earnings per share of 746 cents and earnings per share of 1 109 cents.
The results for the last financial year were negatively impacted by the Nigerian regulatory fine which knocked 455 cents per share (cps) off the earnings.
There were, however, additional issues the negatively impacted MTN’s results. According to the group, these include:
* Foreign exchange losses (324 cps);
* The ‘interest unwind’ related to the Nigerian regulatory fine (45 cps);
* The MTN Zakhele Futhi BBBBEE transaction charge (88 cps);
* Professional fees related to the settlement of the Nigerian regulatory fine(73 cps);
* Losses from investments in Digital Group being mainly Africa Internet Holdings (AIH), Middle East Internet Holdings (MEIH) and Iran Internet Group (IIG) (39 cps);
Hyperinflation impact(37 cps); and
Losses from the Nigeria tower company mainly as a result of foreign exchange losses on US dollar-denominated loans (122 cps); (following MTN exchanging its interest in the Nigeria Tower Company for the increased stake in IHS Holding this investment will be shown as “an asset available for sale”).