MTN expects 25-30% earnings rise on forex gain from Mauritius
South Africa’s second biggest mobile-phone company stated recently that its Mauritius subsidiary contributed a lot to its profits with a currency gain of 2.3 billion rand (around Rs 6.33 billion). (Image: Mail & Guardian)
South Africa-based telecommunications major MTN Group expects 2013 earnings per share to rise between 25 to 30% on the back of foreign exchange gain of about $99.5 million (around Rs 3 billion), largely from its Mauritius operations.
This compares favourably to 2012’s foreign exchange transactions when the multinational mobile telecommunications company faced a cumulative loss of about 2.7 billion rand (around Rs 7.4 billion).
Johannesburg-based MTN stated recently that its Mauritius subsidiary contributed a lot to its profits with a currency gain of 2.3 billion rand (around Rs 6.33 billion).
During the first half of last year, MTN achieved sales of about 31 per cent in South Africa together with the rest coming from operations in other markets including Nigeria.
According to data gathered by Bloomberg, beside the dollar, the rand was not performing well in 2013 and declined by 19 percent in the period.
At the market close in Johannesburg, the MTN shares fell 1.4 per cent to 197.88 rand with the company valued at 371 billion rand.
This year the stock has declined by 8.8 per cent compared with a 12 per cent fall at Vodacom Group Ltd, the South Africa market leader in the telecommunications space.
MTN, second biggest provider of mobile phone services to South Africans, lagging behind Vodacom Group Ltd, is present in many countries across Africa, Europe, and Middle East. The annual results of MTN for the period ended 31 December, 2013 will be published on March 5, 2014.