To view the PDF file, sign up for a MySharenet subscription.

MTN GROUP LIMITED - Trading Statement for the year ended 31 December 2016

Release Date: 08/02/2017 08:30
Code(s): MTN     PDF:  
Wrap Text
Trading Statement for the year ended 31 December 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 YEAR ENDED 31 DECEMBER 2016

MTN is currently in the process of finalising its financial results for the year ended 31 December
2016 (FY2016) which will be announced on the Johannesburg Stock Exchange News Service on or
about Thursday, 2 March 2017.

Paragraph 3.4(b) of the JSE Limited Listings Requirements require 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 a loss in basic headline earnings per
share (HEPS) and basic earnings per share (EPS) for FY2016. In the prior year comparable period
MTN reported HEPS of 1 204 cents and EPS of 746 cents.

The expected decline in the HEPS and EPS is mainly 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 approximately 474 cents on HEPS and EPS, respectively.

Other contributing factors to the negative HEPS and EPS for FY2016 were foreign exchange losses in
a number of operations, losses from joint ventures and associates, additional depreciation resulting
from prior hyperinflation adjustments in MTN Irancell ,the Zakhele Futhi tax and share-based
payment charges and professional fees incurred in respect of the settlement of the Nigeria
regulatory fine and planned listing.

FY2016 results are further expected to be negatively impacted by the under-performance of MTN
Nigeria and MTN South Africa in the first half of 2016. MTN Nigeria’s first half performance was
impacted by the disconnection of 4,5 million subscribers in February 2016 in compliance with the
Nigerian Communications Commission subscriber registration requirements. The withdrawal of
regulatory services, which was resolved in May 2016, the weak economy and the depreciation of the
Naira against the USD also negatively impacted MTN Nigeria’s performance. Consolidated results in
Rand terms from Nigeria were affected by the weaker Naira in the second half of the year. The
disappointing results from MTN South Africa in the first six months, were largely due to the poor
postpaid performance.

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

8 February 2017
Sponsor

Deutsche Securities (SA) Proprietary Limited

Date: 08/02/2017 08:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story