Africa's biggest mobile operator, MTN, today delivered solid half-year financial results, with group subscribers up 11.4% and headline earnings per share up 20.6%.
Highlights:
Group subscribers up 11.4% since 31 December 2009, to 129.2 million
EBITDA margin up 0.5 percentage points, to 43.3%
Free cash flow up 164%, to R6.8 billion
Adjusted HEPS up 20.6%, to 438.6c
Maiden interim dividend of 151c per share
Group revenue decreased by 2.2%, to R56 billion, while earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 1.1%, to R24.2 billion, for the current period compared to the prior comparative period.
MTN's EBITDA margin increased 0.5 percentage points, to 43.3%, compared to the prior comparative period, and by 3.9 percentage points compared to the six months to 31 December 2009.
The company attributes this to improved margins from MTN SA, MTN Irancell and sustained margins in MTN Nigeria.
Adjusted headline earnings per share (HEPS) increased by 20.6%, to 438.6c, for the period. Data revenue increased by 46%, to R2.9 billion, compared with the same period last year.
Net finance costs decreased by 39.4%, to R2.2 billion, mainly due to a functional currency gain of R70 million (June 2009: R2.8 billion loss). The movement in the current period was mainly due to the significant reduction in functional currency exposure through capital restructuring.
However, foreign currency losses of R957 million were incurred partly as a result of the translation of various euro-denominated inter-company loans and bank account balances.
MTN Group's depreciation charge increased by 5.5%, or R0.3 billion, to R6.3 billion, compared with June 2009, as a result of higher levels of investment in network infrastructure in prior years.
Nigeria and SA reported a higher deferred tax charge as a result of the significant capital expenditure in prior reporting periods.
MTN SA grows revenue
MTN SA's revenue increased by 7.1%, to R17.1 billion, compared to the previous period. This was mainly a result of an increase in data revenue.
Segmented data offerings for the prepaid consumer boosted data revenue by 42%. Prepaid average revenue per user (ARPU) increased by R9, to R109. Postpaid ARPU decreased by R29, mainly due to the continued lower out-of-bundle usage and migrations to lower-value packages, which are both indicative of the slow pace of the recovery of the local economy and a stricter credit policy.
EBITDA growth was much stronger, at 15.9%, as the EBITDA margin increased by a healthy 2.6 percentage points to 33.9%, at 30 June 2010. This was mainly due to lower handset costs, partly as a result of foreign exchange gains on handsets.
Related story:
MTN no longer sports double digits
Share
