The MTN Group is expected to report an improvement of at least 20% in both headline earnings per share (HEPS) and earnings per share (EPS) for half year, according to the group's trading statement for the six months ended 30 June 2017.

Should this materialise, it would be a significant improvement to the figures reported during the same period in 2016 when MTN announced a headline loss per share of 271 cents and attributable loss per share of 301 cents.

According to MTN, last year's negative performance was mainly as a result of nonrecurring costs, including the Nigeria regulatory fine of 474 cents per share.

MTN Nigeria, a company in which MTN Group holds a 51% equity interest, incurred a US$5.2 billion fine by the Nigerian Communications Commission (NCC), which the regulator said was due to the telco's failure to deactivate over 5 million unregistered SIM cards.

The fine was subsequently reduced to US$1.67 billion after negotiations with authorities.

Nigeria's communication minister, Adebayo Shittu, subsequently confirmed the company has paid US$254 million of the total fine owed and has agreed to settle the debt over three years.

The company is believed to have initiated several cost-cutting measures to reduce the impact of the fine, including dropping its sponsorship of popular game show Who Wants to be a Millionaire, as well as cancelling deals with several celebrity brand ambassadors.

MTN disclosed that it is currently in the process of finalising its financial results for H1 of 2017 which will be announced on the Stock Exchange News Service of the JSE Limited on 3 August 2017.

"Shareholders are therefore advised that MTN expects to report an improvement of at least 20% in both headline earnings per share (HEPS) and earnings per share (EPS) for the six-month period ended 30 June 2017, compared with a headline loss per share of 271 cents and attributable loss per share of 301 cents reported in the prior comparable period," MTN stated.

Rwanda fine update

In a related development, MTN has agreed to pay a US$8.5 million fine slammed on it by the Rwanda Utilities Regulator Authority (RURA).

MTN Rwanda's CEO Bart Hofker said, "We have taken the necessary steps to address the regulator's non-compliance concerns [and] are currently in discussions with the regulator to agree on the terms of settling the fine."

RURA said the operator had breached its license obligation when it decided to host its IT services hub in Uganda.

"They are punished for relocating their IT services outside Rwanda, and this was deliberate," said RURA Spokesman Anthony Kulamba.

MTN did not respond to requests for comment.