JOHANNESBURG, South Africa-Mobile network operator MTN Group announced it has resumed its positive growth driven by strong performance across all its African operations. Revenue increased by 68 percent from 5.17 billion rand (US$566.6 million) to 8.68 billion rand (US$951 million), while earnings before interest, tax, depreciation and amortization (EBITDA) grew by a phenomenal 79 percent to 2.68 billion rand (US$293 million).
MTN International increased revenue from 4 million rand (US$438,000) to 2.96 billion rand (US$324 million), contributing 34 percent to group revenue.
Phuthuma Nhleko, chief executive of MTN, said: “The group has successfully diversified its income streams. Operations outside of South Africa contributed 34 percent to group revenue. A total of 5.7 million capable subscribers was recorded in the group’s managed operations, an increase of 19 percent since March 2002.”
MTN South Africa, which includes MTN and MTN Service Provider, continued to face a challenging and competitive economic environment. Revenue increased by 21 percent, while EBITDA grew by 13 percent. The EBITDA margin decreased to 29 percent from 31 percent compared with the same period the previous year as a result of increased subscriber acquisition costs and higher interconnect costs.
MTN International’s operations in five African countries performed above expectations. Revenue increased from 4 million rand to 2.96 billion rand compared with the same period last year, with EBITDA levels reaching 1.06 billion rand (US$116 million). All operations provided a positive contribution to profit after tax.
MTN Cameroon achieved a turnaround in the period under review. With a new management team in place, revenue increased to 366.8 million rand (US$40.2 million). Subscriber growth continues to be strong, reaching 316,000 by 30 September, a 41-percent increase since March 2002.
MTN Nigeria enjoyed a successful first year. The MTN brand is strongly positioned with market share estimated at around 54 percent. Total revenue of 2.22 billion rand (US$243 million) was recorded, with a profit after tax of 420.7 million rand (US$46.1 million).
MTN Uganda continued to deliver strong results despite intensifying competition. Subscriber numbers increased to 298 000, a 34-percent increase since March 2002.
MTN Rwandacell and MTN Swaziland both turned in good performances. Subscriber growth was up 30 percent to 90,000 and 15 percent to 63,000 subscribers respectively during the period under review.
Nhleko added: “MTN International’s operations face a number of ongoing challenges, which include managing the regulatory and political environment, currency volatilities and interconnect issues. Management, together with its local strategic partners, will continue to address these issues in the respective countries. As a result of the ongoing funding requirement for the group’s expansion into Africa, the directors believe that it is in the best interest of shareholders to reinvest retained earnings to restrict borrowing levels.”
