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Notes to the consolidated financial statements
As of December 31, 2008, 2007 and 2006
14.Earnings per share
Basic earnings per share amounts are calculated by dividing net profit for the year attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share amounts are calculated by dividing the net profit for the year attributable to equity holders of the Company (after deducting interest on the convertible notes if the conversion of these notes would be dilutive) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of dilutive potential shares.
The following reflects the net profit and share data used in the basic and diluted earnings per share computations:
| 2008 | 2007(i) | 2006(i) | |
| US$ '000 | US$ '000 | US$ '000 | |
| Basic | |||
| Net profit attributable to equity holders from continuing operations | 539,913 | 451,244 | 255,546 |
| Net (loss) profit attributable to equity holders from discontinued operations | (22,397) | 245,898 | (86,599) |
| Net profit attributable to equity holders used to determine the basic earnings per share | 517,516 | 697,142 | 168,947 |
| Diluted | |||
| Net profit attributable to equity holders from continuing operations | 539,913 | 451,244 | 255,546 |
| Interest expense on convertible debt (note 24) | 760 | 16,640 | – |
| Net profit attributable to equity holders from continuing operations used to determine the diluted earnings per share | 540,673 | 467,884 | 255,546 |
| Net (loss) profit attributable to equity holders from discontinued operations | (22,397) | 245,898 | (86,599) |
| Net profit attributable to equity holders used to determine the diluted earnings per share | 518,276 | 713,782 | 168,947 |
| 2008 | 2007(i) | 2006(i) | |
| '000 | '000 | '000 | |
| Weighted average number of ordinary shares (excluding treasury shares) for basic earnings per share | 107,869 | 101,088 | 100,361 |
| Effect of dilution: | |||
| Potential incremental shares as a result of share options | 434 | 1,250 | 1,010 |
| Assumed conversion of convertible debt (ii) | 343 | 5,709 | – |
| Weighted average number of ordinary shares (excluding treasury shares) adjusted for the effect of dilution | 108,646 | 108,047 | 101,371 |
- (i)Figures for 2007 and 2006 have been adjusted, excluding Millicom operation in Sierra Leone.
- (ii) For the year ended December 31, 2006, the effect of the conversion of the 4% Convertible Notes has not been reported because to do so would have been anti-dilutive (see note 24).
To calculate earnings per share amounts for the discontinued operations, the weighted average number of shares for both basic and diluted amounts is as per the table above.
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