admin
JOHANNESBURG. – MTN Group Limited, Africa’s largest wireless operator, said first half headline earnings per share would be 20 percent to 25 percent higher following a foreign currency exchange boost. The mobile phone service provider made a currency gain of about R1 billion during the six months through June, compared with a R1,5 billion loss in the previous year, the company said in a statement yesterday. The increase came as a result of lower net finance costs at some of its subsidiaries. MTN did not immediately respond to calls or e-mails seeking further detail. The shares rose as much as 1,7 percent to R188,46, the highest in more than two weeks and traded 0,9 percent higher in Johannesburg.
“It’s likely to be a subsidiary with debt, such as Nigeria,” Bpi Capital analyst Kate Turner-Smith said.
“Translating Nigeria’s finance costs into South African rand at current rates could result in the foreign exchange gain.”
The Nigerian naira has appreciated 18 percent against the South African currency over the past 12 months, according to data compiled by Bloomberg. Nigeria accounted for about 28 percent of MTN’s 2012 revenue. The company will report first-half financial results on August 14, it said.
Net finance costs were R4,16 billion in the year through December, an increase of R2,58 billion on the previous year, MTN said in a statement in March. – Bloomberg.
Online Reporter