South African (SA) mobile operator MTN Group said on Monday its board had approved $375 million share buyback programme as it reported a 21.3% rise in half-year adjusted profit and strong cash generation.
Chief Executive Officer (CEO) Ralph Mupita told journalists the buyback programme would begin on Monday. MTN shares were up 4.61% at 201 Rand.
Africa’s biggest telecom operator, with more than 317 million customers across 19 markets, said adjusted headline earnings per share (HEPS) rose to 793 cents in the six months ended June 30 from 654 cents a year earlier.
Reported HEPS, however, fell 5.8%, non-cash impairment on its 49% stake in Irancell, reflecting Iran’s hyperinflation and the sharp depreciation of the rial. Foreign exchange losses in South Sudan also weighed on earnings.
The impairment comes as MTN seeks to exit Iran, its last remaining operation in a broader withdrawal from the Middle East.
The process has been complicated by United States sanctions, in place since May 2018, which have also prevented the company from repatriating millions of Rand in trapped dividends, Mupita said.
“With the sanctions in place, we can’t put any money in and we can’t take any money out. But if the situation did change in a way where there was a removal of sanctions we would continue with executing our Middle East exit strategy,” he added.
–Reuters–
