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MTN GROUP LIMITED - Trading Statement for the six months ended 30 June 2016

Release Date: 19/07/2016 09:32
Code(s): MTN     PDF:  
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Trading Statement for the six months ended 30 June 2016

MTN Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1994/009584/06)
Share code: MTN
ISIN ZAE000042164
("MTN" or the “Company”)

TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2016

MTN is currently in the process of finalising its financial results for the six months ended 30 June 2016
(“HY2016”) which will be announced on the Johannesburg Stock Exchange News Service on Friday, 5 August
2016.

Paragraph 3.4(b) of the JSE Limited Listings Requirements requires a trading statement to be published as soon
as an issuer and its directors are satisfied that a reasonable degree of certainty exists that the financial results
for the period to be reported upon next will differ by at least 20% from those of the previous corresponding
period.

Shareholders are therefore advised that MTN expects to report negative basic headline earnings per share
(HEPS) and basic earnings per share (EPS) for HY2016. In the prior year comparable period MTN reported HEPS
of 654 cents and EPS of 653 cents.

The expected decline in the HEPS and EPS is primarily as a result of the Regulatory fine imposed on MTN
Nigeria (“the Nigerian regulatory fine”) following a resolution with the Federal Government of Nigeria on
10 June 2016. The Nigerian regulatory fine is expected to have an estimated negative impact of 474 cents on
HEPS and EPS, respectively.

Foreign exchange losses in a number of operations, losses from joint ventures and associates and
hyperinflation adjustments on MTN Irancell are also expected to have a negative impact on HEPS and EPS for
HY2016.

HY2016 results are further expected to be negatively impacted by the under-performance of MTN Nigeria and
MTN South Africa. MTN Nigeria’s performance was impacted by the disconnection of 4,5 million subscribers in
February 2016, the final batch of subscribers to be disconnected in compliance with the Nigerian
Communications Commission subscriber registration requirements. The withdrawal of regulatory services
which was re-instated on 15 March 2016 with approval for promotions and price plans granted in early May
2016 also negatively impacted MTN Nigeria’s performance. MTN South Africa is expected to report a decline in
the Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) margin, impacted by the marked
increase in handsets sold during HY2016.

A further trading statement will be issued once the Company obtains a reasonable degree of certainty as to
the likely range within which the HEPS and EPS are expected to be finalised.

The financial information on which this trading statement is based has neither been reviewed nor reported on
by MTN`s external auditors.

Fairland
19 July 2016

Sponsor
Deutsche Securities (SA) Proprietary Limited

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