MTN subscribers up 14%
The MTN Group today reported its latest set of financial results for the six months period ended 30 June 2009. Highlights of the results include:
- Group subscribers up 14% to 103,2 million from December 2008
- Revenue up 24,2% to R57,3 billion from June 2008
- EBITDA up 24,8% to R24,5 billion from June 2008
- PAT up 30.6% to R9 billion from June 2008
- Headline EPS up 22,5% to 415,5c from June 2008
- Adjusted Headline EPS down 10,9% to 363,8c from June 2008
According to MTN revenue and EBITDA results, when compared to the prior six month period ended 30 June, were not materially impacted by movements in currencies in the majority of countries in which they. “However growth in earnings was negatively impacted by functional currency losses of R2.8 billion (June 2008: R0.9 million gain) on shareholder loans, receivables and cash,” MTN said.
MTN said that their network expansion and capacity investment strategy initiated in 2008 supported the strong performance of the Group’s subsidiaries, particularly where competitors have elected to scale back on investments. “Enhanced distribution channels and attractive value propositions also contributed to the positive performance.”
MTN’s mobile subscriber base passed the 100 million milestone during the reported period to reach 103.2 million subscribers at 30 June 2009. This is a 14% increase since 31 December 2008. Subscribers have increased by 39% since 30 June 2008.
MTN Group President and CEO Mr. Phuthuma Nhleko said: “Notwithstanding the economic downturn, this is a satisfactory set of results achieved through the successful execution of our operating strategy which is underpinned by sound a business model of strategic investment choices, strong corporate governance and effective management across MTN’s global footprint.”
On prospects, Mr. Nhleko said: “While many of our markets remain relatively vulnerable to the global economic downturn, there are some indications that conditions may be starting a slow recovery. Competition across MTN’s footprint is likely to continue to increase”. But, he stressed, MTN remains focused on:
- actively seeking value-accretive expansion opportunities in emerging markets;
- tightly monitoring infrastructure investments to ensure appropriate levels of capacity and quality of service for an enlarged market;
- optimising efficiencies in maintaining and improving our competitive position while ensuring the Group is able to benefit from a rapidly converging technology market, and continued investment in sub-marine cables for efficient access;
- continuing engagement with regulatory authorities in the development and refinement of the telecommunication sector; and
- the implementation of MTN’s proposed BEE deal at the appropriate time.
The MTN Group revenues increased by 24,2% to R57,3 billion (30 June 2008: R46,1 billion), largely driven by the strong growth in subscribers since 30 June 2008.
MTN financial results discussion
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