MTN profit declines
MTN reported a fall in profit due mainly to exchange rate movements, as it released its results for the year ended December 31, 2009 on Thursday.
The listed cellphone operator said adjusted headline earnings per share were down 16.6 percent to 754.3 cents.
This was in spite of a 28 percent increase in subscribers to 116 million.
“Movements in exchange rates in the year, mainly in the South African rand and Nigerian naira had a substantially negative impact on the group’s financial results,” MTN said.
Looking ahead, it said competition across its footprint was likely to continue to increase and while economies remained fragile, there were tentative signs of a recovery in economic activity.
MTN said it remained focused on seeking expansion opportunities in emerging markets to reduce concentration risk and leverage economies of scale.
It also remained committed to monitoring infrastructure investments to ensure appropriate levels of capacity and quality of service.
The group said it would continue to investment in fibre and cable requirements to service evolving voice and data requirements while it would optimise efficiencies including infrastructure sharing, standardisation of systems and processes, rationalisation of suppliers, cost management and cash optimisation.
MTN said it would continue to talk to regulatory authorities in the development and refinement of the telecommunications sector and it would implement its black economic empowerment transaction.
MTN profit declines << Discussion
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