MTN Group has announced that its financial performance for 2023 will be influenced by the downwardly revised restatements of its Nigeria unit, attributed to the significant devaluation of Nigeria’s currency.
Impact on MTN Nigeria and Group
The telecommunications group, based in South Africa, highlighted that higher operating and net finance costs at MTN Nigeria, a consequence of the naira’s depreciation against the dollar, have had a notable impact on its financial standing. As a result of these factors, MTN Group’s 2022 opening total equity balance is set to be adjusted to 2.4 billion South African rand ($125.2 million), aligning with the Nigerian subsidiary’s financial restatements for the years 2019 to 2021.
Furthermore, the company anticipates a reduction in profit after tax by ZAR407 million. Consequently, the closing total equity as of December 31, 2022, is expected to amount to ZAR119.6 billion.
Earnings Outlook for 2023
MTN noted that as a result of MTN Nigeria’s restatements, the group’s 2022 earnings per share and headline EPS are projected to decline by approximately 17 South African cents. Looking ahead to 2023, the company foresees a substantial drop in earnings per share by 70% to 90%, compared to 2022 where EPS stood at 1,071 cents. Headline EPS is also expected to decrease by 60% to 80%, relative to the 1,154 cents recorded in 2022.
These impending changes underscore the challenges and adjustments MTN Group is navigating amidst the evolving economic landscape in Nigeria and its overarching impact on financial performance.