MTN Shares Drop Despite Expected 20% Higher Annual Earnings
The mobile operator MTN’s share price has dropped despite announcing on Monday 4th February that it was expecting to report annual earnings of at least 20 percent higher. The share price ended the day at 2.54 percent lower at R85.86 ($6.40) on the JSE yesterday.
For the twelve months that ended in December 2018 the telecoms operator, which has been fighting Nigerian woes, said it predicted that headline earnings per share would improve by 36.4 cents from the current 182cents per share. Earnings per share are forecasted to go up by 49.2cents attributable earnings per share from the 246cents for the previous financial year.
The telecoms group did not give much more detail on its expectations. MTN said that it expected to publish its financial results on Thursday.
An analyst at Avior Capital Markets, Ruhan du Plessis said that the market had an expectation of the 20 percent improvement in MTN’s performance, but that there was as yet little detail.
Mr du Plessis added that the share price had been affected by a general sell-off in the market. He said that the shares were starting off a low base.
MTN’s Nigerian division is due in court this week over the disputed $2 billion (R26.6bn) that it is alleged to owe in taxes.
Credit: This article originated from www.iol.co.za