African telecoms giant, MTN Group, expects an upsurge in earnings for the last financial year across its 21 markets after resolving US$8.1-billion dispute with the Central Bank of Nigeria (CBN), even as it faces another court hearing over a separate $2 billion tax dispute later this week.
The largest wireless carrier by subscribers in Africa said in a statement Monday that its earnings per share rose by at least 20 percent in 2018 more than the 182 cents in the prior financial year, indicating an improved profitability for the company.
For the 12-month period to December 2018, headline earnings per share (HEPS) are expected to increase by 36.4 cents, while attributable earnings per share (EPS) are projected to inch up by 49.2 cents from 246 cents, according to MTN. The results would be published on March 7, MTN said.
Despite the announcement, shares of the South African company reversed previous gains recorded on the Johannesburg Stock Exchange (JSE) to close at 2.54 percent lower as of 4:00 pm in Nigeria.
The mobile-phone company has since August last year been battling with the Nigerian authorities where it has its biggest market to pay a total claim of $10.1 billion over an alleged illegal repatriation of shareholders’ funds from the country and tax default, causing the company to lose 20 percent of its market value.
CBN reached an agreement with MTN last December after the telecom company paid $53 million on the basis of new information received that showed no wrongdoing by the firm regarding most of the repatriations. However, MTN is yet to resolve its $2 billion tax dispute as another court case has been fixed for February 7.
Oluwasegun Olakoyenikan
