MTN's annual financial results for the year ended 31 December 2009 show the group recorded only single-digit growth for the period.
The company has blamed the significant slowing of growth - of both revenue and EBITDA - on the extensive changes in African currencies, specifically the South African rand and the Nigerian naira.
MTN's revenue grew over the year by 9.2%, to R119 billion, and its EBITDA is up 6.7%, to 46.1 billion. This is a far cry from the 48% surge in revenue in the same period last year, and a 40% increase in its EBITDA.
Despite the economic slowdown, the company has seen good subscriber growth of 28% and now serves 116 million customers across the continent and its surrounds.
Many of the company's local investors will be disappointed with these figures, even though they have been tempered by the global economic downturn, which hit many other South African businesses harder than MTN.
Investors will soon also ask the company to announce a replacement for its outgoing CEO, Phuthuma Nhleko, whose contract is expiring. Nhleko will step down sometime before June 2011.
However, international telecoms research specialist TeleGeography says the mobile operator still has a bright future on the continent. The company recently conducted a study of 16 of the globe's largest telecoms operators and placed MTN as the leader in growth.
The study found MTN's growth over the three years under review (2006 to 2009) was 137%, the highest of all the companies researched. The average for all companies researched showed growth of 45%.
John Dinsdale, executive director of TeleGeography Research, says MTN's latest results slowdown is to be expected. However, he says the company has far better prospects than the other 16 firms that were part of the study.
“Its growth rates will be much lower than has been seen over the last three years, unless it adds to its business through a merger or acquisition. Nonetheless, it has the geographic footprint and competitive positioning which should enable it to continue as the highest growth service provider out of this group of companies,” he adds.
With its African positioning, MTN has become one of the globe's hottest possible takeover targets, with India's telecoms powerhouse, Bharti Airtel, having recently lost out on a merger, and China Mobile expressing an interest in some of the company's international assets.
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