MTN Group (MTN) reported that group subscribers grew 53% to 74.1 million in the six months ended June compared with 48.2 million subscribers at June 2007. <\/p>\n
This was a 21% increase from 61.4 million at end December 2007.<\/p>\n
Adjusted headline earnings per share rose 26% to 408.5 cents from 324.7 cents a year ago.<\/p>\n
Revenue was up 35% to 46.1 billion rand from June 2007, while earnings before interest, tax, depreciation and amortisation (EBITDA) was up 29% to 19.6 billion rand from a year ago.<\/p>\n
The group said the results were achieved against the background of increased investment in infrastructure and distribution to cater for ever increasing demand. <\/p>\n
MTN delivered a sound performance in the six months to 30 June 2008, driven mainly by subscriber growth in increasingly competitive markets, it said.<\/p>\n
In the six months from December 2007 subscribers in the WECA region increased by 16% to 32.5 million, in the SEA region by 9% to 21 million and the MENA region recorded a 47% increase to 20.6 million. <\/p>\n
The growth in the MENA region over the last six months was mainly driven by a 93% increase in subscribers in Irancell to 11.6 million. <\/p>\n
MTN consolidates only 49% of Irancell financials thereby diluting the impact on revenue and EBITDA growth.<\/p>\n
The average revenue per user (ARPU) has marginally declined in most operations, which is consistent with increased penetration into lower usage segments, MTN said.<\/p>\n
MTN South Africa performed well in a very competitive environment and despite the slowdown in consumer spending in many sectors due to rising interest rates, inflation and the rising fuel prices.<\/p>\n
Subscribers increased by 5% to 15.6 million in June 2008 from 14.8 million in December 2007, mainly due to strong growth in prepaid subscribers which grew 6% to 13 million and to a lesser extent the 4% growth in postpaid subscribers to 2.6 million.<\/p>\n
The introduction of MTN Zone, the prepaid dynamic tariffing price plan, in February 2008 together with the continued impact of low denomination vouchers played a major role in the acquisition of prepaid subscribers. <\/p>\n
MTN Zone had 4.5 million users at the end of June 2008, of which 400,000 were estimated to be new connections.<\/p>\n
Looking ahead, MTN said given the current developments in the global telephony market, the group’s prospects for the second half of 2008 remain positive in increasingly competitive markets.<\/p>\n
MTN’s major strategic priorities are actively seeking value-accretive expansion opportunities in emerging markets, ongoing infrastructure investment to ensure appropriate levels of capacity and quality of service, ensuring the Group is well positioned to benefit from a rapidly converging technology market and optimising efficiencies in maintaining and improving competitive position, it said.<\/p>\n