MTN has issued a trading statement for the year ended 31 December 2022, alerting shareholders to substantial changes from the previous year.

The group expects to report an increase in earnings per share (EPS) of between 35% and 45% (or 267 cents to 343 cents).

The EPS for the corresponding financial year ended 31 December 2021 (FY 21) includes a loss on deconsolidation of subsidiary of -262 cents, as well as fair value gains on acquisition or disposal totalling 99 cents; both of which were nil for FY 22.

Considering the EPS of 763 cents for FY 21, this translates to a range of 1 030 cents to 1 106 cents for FY 22.

EPS includes impairment losses that mainly relate to investments, goodwill and property, plant and equipment totalling approximately -44 cents (2021: -64 cents); an impairment loss on remeasurement of disposal groups of -70 cents (2021: -2 cents); a net gain on the disposal of South African towers of 22 cents (2021: 0 cents) and the net profit on disposal of property, plant and equipment and intangible assets of 9 cents (2021: 5 cents).

MTN is also expecting to report an increase in headline earnings per share (HEPS) of between 12% and 22% (or 118 cents to 217 cents).

Considering the HEPS of 987 cents for the corresponding FY 21, this translates to a range of 1 105 cents to 1 204 cents for FY 22.

HEPS was negatively impacted by some non-operational and once-off items of approximately -159 cents (2021: -123 cents) for FY 22. These include hyperinflation adjustments (125 cents), foreign exchange losses (-181 cents), an IFRS 2 charge arising from the MTN Ghana localisation transaction (-4 cents), divestments (-24 cents), remeasurement of deferred tax asset (-65 cents) and other non-operational items (-10 cents).