Cellular network operator MTN Group`s after-tax profit soared by 168% to R2.13 billion in the six months to 30 September.
<B>Salient figures</B>
MTN Group results for the six months to 30 September 2003.
Year-earlier figures in parentheses.
Revenue: R11.27b (R8.68b)
EBITDA: R4.33b (R2.69b)
Profit from operations: R2.97b (R1.48b)
Profit before tax: R2.7b (R1.21b)
Attributable earnings: R1.81b (R705m)
Basic HEPS: 127.1c (60.9c)
Adjusted HEPS: 123.3c (60.9c)
Current assets: R6.77b (R5.66b)
Bank balances, deposits, cash and amounts receivable on demand: R2.76b (R1.53b)
Securitised cash deposits: R776m (R1.25b)
Current liabilities: R5.96b (R8.84b)
NAV per share: R11.16 (R9.97)
Net cash generated by operations: R4.06b (R2.89b)
The South African operations grew revenue by 26% to R7.11 billion while international operations` revenue soared by 39% to R4.12 billion, despite the effect of rand strength on the consolidation of their results. This is the first time its after tax profit has exceeded that of rival operator Vodacom, although its revenue is still marginally smaller. Vodacom`s revenue was R11.29 billion for the same period, with an after-tax profit of R1.37 billion.
"MTN Nigeria experienced strong demand for its services, requiring a controlled sign-up of new subscribers to match the available network capacity, while accelerated network roll-out continued," says CEO Phuthuma Nhleko.
By the end of last month, the number of base stations in Nigeria had increased to 652 from 378 at the end of March.
The number of subscribers in Nigeria rose by 127% to 1.38 million, with average revenue of $55 per user. The South African base also showed an improvement, rising by 25% to 5.36 million, with average revenue of R207 per user.
In total, MTN now has 7.89 million subscribers.
Nhleko says that assuming current market conditions continue, the group is confident that the South African operation will continue its strong free cash flow generation while international operations are expected to maintain subscriber growth.
"The group now derives an increasing proportion of earnings from outside SA and, as a result, is becoming more susceptible to foreign exchange rate movements."
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