Company announcements

MTN Group Ltd

Analysis of upcoming company announcements, using our market insight information and analysis tools.

For this edition, we cover the following stocks:

Sanlam Ltd

Standard Bank Group Ltd

Exxaro Resources Ltd

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MTN Group Ltd

Full year results for the 12 months ending 31 December 2013 expected on the 5th of March 2014 

MTN Group Limited (MTN) is a multinational telecommunications company offering mobile communication and related products and services to individuals and businesses on three continents. The Company’s principal activities include the provision of network information technology (IT) services, local, national and international telecommunications services; broadband and Internet products and services, and converged fixed/mobile products and services.

Results expectation

MTN Group Ltd is expected to release full year results for the 12 months ending 31 December 2013 on the 5th of March 2014.

MTN has guided that it expects Headline Earnings Per Share to be 25% to 30% higher than that of the comparative period. Favourable foreign exchange movements are cited as largely responsible for the improved earnings growth expected.

Although the guidance is positive, investors remain concerned around the outcome of the company’s current litigation with the Independent Communications Authority of South Africa (ICASA). MTN hopes to stop the implementation of ICASA’s lowering of mobile termination rates between providers, which would affect larger players such as MTN and Vodacom most significantly. Vodacom has estimated that earnings could be affected by as much as $90m in 2014 should the new mobile termination rates be implemented.

MTN is the second largest cellular network provider in South Africa and would also be significantly impacted by the new rates implementation, however due to the greater geographical diversification of earnings, less so than its sector peer.

 

Source: IG Insight, as of 16:17 28/02/2014

Source: IG Insight, as of 16:17 28/02/2014

Technical View

A daily price chart of MTN highlights a long-term uptrend firmly intact, recognised by the price continuing to trade above the 200 day simple moving average (200MA).

The 20100 level is considered as short-term resistance, a break of which favours a relatively quick move back to the recent high at 22000. Critical support is identified at the 19000 level, which if broken, considers the uptrend starting to fail.

Source: ProRealTime charts, as of 28/02/2014

Fundamentals

Source: IG Insight, as of 16:17, as of 28/02/2014

Source: IG Insight, as of 16:17 28/02/2014

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