MTN update disappoints

Johannesburg, 15 Mar 2007

JSE-listed cellular provider MTN yesterday saw its shares lose ground after issuing a trading update.

MTN's share price dropped 3.84%, to close at R86.50, after closing Tuesday at R89.95. However, analysts point out the market was initially weaker than expected due to disappointing US data. The telecommunications sector closed down 3.57% yesterday.

The company noted that, as it moved its financial year from end-March to end-December, the trading statement is not directly comparable to the previous 12-month period.

For the nine months to end-December 2005, MTN reports basic headline earnings per share of 359.8c, adjusted headline earnings per share of 338.2c and attributable earnings per share of 352.7c.

The company, which expects to present its annual results on 29 March, says basic headline earnings per share will be between 591.4c and 621.7c. Adjusted headline earnings per share are expected to be between 567.4c and 596.5c, while attributable earnings per share will be between 590.3c and 620.5c.

Companies are obliged by the JSE's listing requirements to notify shareholders as soon as they are aware earnings will differ by at least 20% from the previous period.