MTN expects higher first-half earnings; shares fall

South African telecom giant MTN, which recently held unsuccessful merger talks with two top Indian telecom majors separately, has forecasted a 9-14 per cent growth in earnings for the first half of this year.     

However, the projections coming days before MTN announces its half-yearly results on Thursday next, failed to enthuse the company's share price, which today fell by close to two per cent here.     

The shares were trading 1.8 per cent down at 113.95 rand as profit forecast missed the market expectations.      

Earlier this year, MTN entered into negotiations with India's Bharti Airtel, but the talks fell apart after Sunil Mittal-led company objected to the South African firm's proposed deal structure under which it sought to make the Indian firm its subsidiary.    

Consequent to failure of talks with Bharti Airtel, MTN entered into exclusive negotiations with Anil Ambani-led Reliance Communications, but the talks ran into uncertainties after some legal issues raised by Reliance Industries, the country's top corporate headed by Anil's estranged elder brother Mukesh Ambani.     

Later, the talks between MTN and RCOM also ended unsuccessfully. However, speculations have been rife about MTN still mulling over a potential deal with some foreign firm in its bid to become a global player.    

MTN is expected to divulge its future expansion plans and business strategies such as inorganic growth opportunities when it announces its half-yearly results on August 28.