MTN Group announced it expects to report a strong rise in headline earnings per share for 2021, but also warned of a major drop in another key profit measure, without giving a reason for either development.
The South Africa-headquartered group predicted HEPs to be between 25 per cent and 35 per cent higher: Reuters explained the metric is the key measure of profit in South Africa.
On the other hand, MTN predicted earnings per share to fall by between 15 per cent and 25 per cent.
South African news site Businesstech noted the EPS prediction includes impairment charges relating mainly to MTN Yemen, along with non-cash losses from a deconsolidation of MTN Syria.
The update comes as MTN prepares for a major brand refresh to position the group as a technology company rather than a telecoms operator.
MTN plans to roll out the new brand from 27 February, with the shift framed it as part of its Ambition 2025 strategy which centres on creating new digital platforms.
The company is in the process of restructuring several of its units in an attempt to drive growth in its connectivity business and progress ongoing efforts to structurally separate its infrastructure and financial technology units.
In December 2021, it also unveiled sweeping changes to its top management team.Subscribe to our daily newsletter Back