MTN has warned shareholders that its earnings for the six-month period ended 30 June will be at least 20% lower than for the corresponding period last year, largely due to a strong rand.

The company will announce its results tomorrow.
In a statement, shareholders are advised that MTN expects an increase of between 19,8% and 24,8% in basic headline earnings per share (HEPS) as well as attributable earnings per share for the six month period against the previous corresponding period. Adjusted headline earnings per share for the period are expected to decrease by between 8,6% and 13,6% against last year.
The only adjustment between HEPS and adjusted HEPS for the period to June 2009 is the reversal of the impact of the put option that a shareholder has on the MTN Nigeria operations, the statement reads. In addition to this reversal, the prior period comparative had an adjustment for the reversal of the deferred tax debit relating to the MTN Nigeria operations.
MTN reminds shareholders that its earnings numbers are negatively impacted by the stronger rand and resultant unrealised forex losses on loans to and receivables from certain operations versus unrealised forex gains in the prior period. Unrealised forex losses in the current period also include losses on dollar denominated deposits.