MTN Group to Revise Earnings Downward as FX Headwinds Hit Nigeria Unit
By Anthony O. Goriainoff
MTN Group has said that its financial performance for 2023 will be affected by the downwardly revised restatements of its Nigeria unit amid the sharp devaluation of Nigeria's currency.
The South Africa-based telecommunications group said Friday that higher operating and net finance costs at MTN Nigeria due to the naira's plunge against the dollar affected its financial performance. MTN Group's 2022 opening total equity balance will be lowered to 2.4 billion South African rand ($125.2 million), in line with the Nigerian subsidiary's financial restatements for 2019 to 2021.
Profit after tax will be cut by ZAR407 million, resulting in closing total equity of ZAR119.6 billion as of Dec. 31, 2022, the company said.
It added that MTN Nigeria's restatements will lower the group's 2022 earnings per share and headline EPS by around 17 South African cents.
For 2023, MTN said it expects EPS to drop by 70% to 90%. In 2022, the company reported EPS of 1,071 cents. Headline EPS is tipped to fall by 60% to 80%. HEPS were 1,154 cents in 2022.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
March 01, 2024 02:03 ET (07:03 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
After Earnings, Is Home Depot Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is Baidu Stock a Buy, a Sell, or Fairly Valued?
-
Why Stocks Are Hitting Record Highs—and What Could Send Them Back to Earth
-
5 Stocks to Buy While They’re Trading at Big Discounts
-
Markets Brief: Tech Stocks Lead Ahead of Nvidia Earnings
-
How Anti-Obesity Drugs Are Innovating the Healthcare Market
-
What’s Happening In the Markets This Week
-
Why Immigration Has Boosted Job Gains and the Economy
-
After Earnings, Is Walmart Stock a Buy, a Sell, or Fairly Valued?
-
Target Earnings: Margins Hold Up, but Top Line Constrained by Weak Discretionary Spending
-
Is Berkshire Hathaway’s Mystery Stock a Buy?
-
After Earnings, Is Uber Stock a Buy, a Sell, or Fairly Valued?
-
Lowe’s Earnings: Tumultuous Macro Weighs on Near-Term Results but Fails to Sway Our Long-Term View
-
Macy’s Earnings: Plan Taking Shape Despite Tough Environment
-
JPMorgan Investor Day: CEO Dimon Pushes Against More Stock Buybacks at Current Prices
-
Should You Buy and Hold an Artificial Intelligence Portfolio?