MTN Nigeria Posts Gain as Investors Anticipate Earnings Surprise
MTN Nigeria Plc posted further gain in the equities market as investors anticipate the telecom earnings would improve in the fourth quarter of its financial year 2024. The telecom company acted decisively on issues that affected its earnings in the first three quarter of 2024.
The company’s actions after its poor earnings has boosted sentiment, according to analysts amidst negative shareholders’ funds. MTN is expected to boost its total equiy with long term sources of income.
According to analysts, the telecom company met its working capital needs following series of commercial paper sales in the debt market in the latter part of 2024, but negative shareholders fund remain a negative score.
Recent buying interest in the telecom stock, which has been slow and steady, was spurred by the renegotiation of tower deals that exposed MTN Nigeria to FX obligations and other exposure.
Bullish equities market analysst are projecting a better day ahead. Hence, the earnings surprise expected from the telecommunication company has continued to drive momentum in the equities market.
On Friday, MTN Nigeria share price settled at N264.2 on last minute buying interest that saw more than 1 million shares valued at about N285 million traded in the local bourse.
This single day rally nudged market value of MTN Nigeria higher by 3.61% to settle at N5.547 trillion. Investors are betting on MTN’s future earnings streams following an adjustment to tariff after regulatory approval.
“The new tariffs present a significant revenue growth opportunity for telecom operators, prompting a reevaluation of our coverage companies”, CardinalStone Securities limited said in a note.
The investment firm said MTNN stands to benefit the most, with the tariff increase expected to drive a 59.0% rise in revenue for 2025, stabilizing at a medium-term compound annual growth rate (CAGR) of 26.6%
MTN Nigeria embarked on house cleaning after three consecutive unimpressive earnings for the last three quarters. #MTN Nigeria Records Gain as Investors Expect Earnings Surprise Yield on Nigerian Treasury Bills Falls ahead of Rebase Data
