MTN Group Limited - MTN Group Combined Trading Statement And Cautionary
Announcement
MTN Group Limited
("MTN Group" or "the Company")
(Incorporated in the Republic of South Africa)
(Registration number 1994/009584/06)
Share code: MTN
ISIN ZAE000042164
MTN GROUP COMBINED TRADING STATEMENT AND CAUTIONARY ANNOUNCEMENT
Section 3.4 (b) (Trading Statements) of the JSE Securities Exchange South Africa
Listings Requirements ("the Listings Requirements"), requires listed companies
to publish a trading statement as soon as they become aware that the financial
results for the period to be next reported upon will be materially different in
one or more of the following aspects:
(1) the financial results for the previous corresponding period;
(2) forecast projections and indications previously provided to the market
in relation to such period;
(3) shareholders expectations of the financial results for such period
arising from guidance previously provided by the issuer, trend analysis
expectations, consensus analysts" forecasts which the issuer is satisfied
were materially accurate, where available, or a combination of all of the
above.
In terms of the Listings Requirements, "materially" in this context has been
defined as an increase or decrease of between 10% and 30%, while changes below
10% are defined as "significant" and changes above 30% are defined as
"substantial".
The Company accordingly advises that it expects the adjusted* headline earnings
per share as well as the headline earnings per share for the financial year
ending 31 March 2004 to be substantially above the adjusted headline earnings
per share and headline earnings per share, respectively, for the previous
corresponding period.
The information provided in this announcement does not contain and should not be
construed as containing any forward looking statements or projections of any
nature whatsoever for periods after 31 March 2004.
* The Company"s subsidiary in Nigeria has been granted a five-year tax
holiday under "pioneer status" legislation. Capital allowances arising
during this period may be carried forward and claimed as deductions against
taxable income from the sixth year of operations onwards. A deferred tax
credit relating to these deductible temporary differences has been
recognized in the previous Company"s results in terms of the requirements
of the South African Statements of Generally Accepted Accounting Practice
AC102, which requires a deferred tax asset to be recognized for all
deductible temporary differences to the extent that it is probable that
taxable profit will be available against which the deductible temporary
differences can be utilized. Although the Group has complied with the
requirements of AC 120, the Board of the Company has reservations about the
appropriateness of this treatment in view of the fact that no cognizance
may be taken in determining the value of such deferred tax assets of
uncertainties as a result of the effects of the time value of money or
future foreign exchange movements. As a result, the Board has decided to
report adjusted headline earnings per share, adjusted in order to negate
the effects of the deferred tax asset credit in addition to headline
earnings per share.
Cautionary Announcement
This trading statement has not been reviewed or reported on by the Company"s
auditors. Shareholders are therefore advised to exercise caution when dealing in
the Company"s securities until publication of the Company"s year-end results on
or about 10 June 2004.
Johannesburg
15 March 2004
Sponsor
Merrill Lynch South Africa |