A positive trading update from MTN is the latest indication that investors in the shares of SA`s telecoms network operators are in for good news when the companies release their results next week.
Cellular operator MTN says it expects to report a 40% to 50% increase in headline earnings per share when it releases its annual results after the close of business next Thursday.
Attributable earnings per share for the year to March are expected to be 70% to 80% higher than those of the previous financial year.
"It should, however, be noted that the MTN Group has changed its accounting policy in relation to goodwill amortisation, in line with International Financial Reporting Standards (IFRS3)," the group says.
"Taking this change into account, attributable earnings per share are expected to increase by between 40% and 50% year-on-year on the restated MTN Group attributable earnings per share for 2004, which excludes the amortisation of goodwill."
Fixed-line network operator Telkom and its 50% subsidiary, cellular operator Vodacom, are reporting their annual results on Monday.
Telkom has indicated that it will report a 35% to 55% increase in basic earnings and headline earnings per share for the year to March.
It attributes the improvement mainly to "restructuring expenses and extending the useful lives of certain assets".
Despite the positive update, the MTN share lost 200c or 4.3% to close at 4 485c on the JSE yesterday.
The Telkom share, which experienced a healthy ascent after the release of the company`s recent update, was 245c or 2.2% down at R111.05.
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