MTN Group reported on Wednesday (8 August) a healthy 17.5% rise in revenue to R66.426 billion for the six months ended June 2012.<\/p>\n
It highlighted solid growth in South Africa, Iran and Ghana of 9.5%, 29.9% and 19.9% respectively. Nigeria’s reported revenue grew 16.5%.<\/p>\n
Adjusted headline earnings per share increased 14.3% to 537.4 cents, from\u00a0470.1 cents in 2011.<\/p>\n
MTN Group also reported a rise in operating profit to R21.641 billion, from R17.767 billion before.<\/p>\n
The group increased its subscriber numbers by 6.9% to 175.997 million from
\n31 December 2011. MTN South Africa delivered a good performance for the six months
\nto 30 June 2012, increasing its subscriber base 6.8% to 23.5\u00a0million.<\/p>\n
Group ebitda, which includes the partial reversal of the\u00a0previously deferred Ghana Tower Company profit and Uganda tower\u00a0profit, increased 18.2% to R29.798 billion.<\/p>\n
MTN’s board has\u00a0decided to increase the full year dividend payout ratio to 72%\u00a0from 70%. The impact on MTN’s cash outflow remains neutral, it said. The\u00a0interim dividend of 321 cents is calculated at 30% of the prior\u00a0full year’s adjusted HEPS.<\/p>\n
In South Africa, revenue improved \u00a0to R19.78 billion, from R18.075 billion, with ebitda up to R7.02 billion, from R6.36 billion.<\/p>\n
Also in SA, at 30 June\u00a02012, there were 11.9 million data users with 4.4 million\u00a0smartphones. Interconnect revenue decreased by 15.3% as a result\u00a0of the lower interconnect rate.<\/p>\n
Post-paid average revenue per user\u00a0(ARPU) continued to trend downward to R265 due to the increased\u00a0uptake of lower value hybrid packages and telemetry SIM cards.<\/p>\n
Prepaid ARPU decreased to R92 largely due to the interconnect rate\u00a0cut and lower marginal prepaid subscribers. Reported blended ARPU\u00a0was R123.<\/p>\n
The group notes that data usage continues to improve through an aggressive 3G rollout, a comprehensive device strategy and appealing local\u00a0content across operations. Mobile Money, which has been launched\u00a0in 13 countries, recorded 7.3 million users.<\/p>\n
Data, excluding\u00a0SMS, contributed 10.0% to group revenue, increasing 69.6% to\u00a0R6.666 billion. MTN said its data strategy will be further supported by\u00a0the West African Cable System (WACS), which became operational\u00a0in May 2012, with landing stations in eight countries.<\/p>\n
Group operating costs increased 17.0% to R37.194 billion. “This\u00a0was largely driven by higher direct and operating costs related to\u00a0network rollout and the cost of handsets and accessories in South\u00a0Africa, which increased mainly due to adverse foreign exchange
\nmovements and higher volumes of handset sales. The weaker rand\u00a0against the operational currencies had a negative impact on\u00a0reported operating costs,” the group said.<\/p>\n
Capex increased 77.7% to R10.144 billion when compared to the same\u00a0period last year. “Importantly, the capex target of R24.772 billion is\u00a0on track for the year with a significant portion of full year\u00a0authorised capex committed to projects. Rollout is expected to\u00a0accelerate in the second half of the year,” MTN said.<\/p>\n
During the six month period, MTN Holdings Proprietary Limited acquired 15.6 million MTN shares at a total cost of R2.088 billion. In total, the group has repurchased 1.2% of issued shares at the cost of R3.018 billion since the buy-back initiative was implemented in late 2011.<\/p>\n
Looking ahead, MTN said it remains optimistic notwithstanding challenging market
\nconditions. The group adds that it is committed to creating value for\u00a0stakeholders through improved shareholder returns and enhancing\u00a0its business model to better position itself as markets mature and\u00a0competition intensifies.<\/p>\n
“MTN’s key priorities over the next six\u00a0months are to maintain its leadership position with an increased\u00a0focus on customer experience and countering competition through\u00a0innovative and relevant products and services.”<\/p>\n
“This strategy will\u00a0be supported by continued investments in infrastructure to ensure\u00a0quality and capacity, the rollout of efficiency initiatives and\u00a0value accretive M&A opportunities,” it said.<\/p>\n
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