MTN delivers R52bn revenue

Johannesburg, 29 Mar 2007

MTN has attributed the strong growth in its full-year results to organic and acquisitive expansion.

The group, which announced earlier this month it had moved its financial year-end to 31 December, from 31 March, this morning reported a solid performance for the new period.

For comparative purposes, MTN provided both audited results for the nine months ended 31 December 2005, as well as unaudited results for the 12 months ended on the same date.

In its announcement to shareholders earlier this morning, MTN said strong organic growth in traditional markets underpinned its performance. SA and Nigeria posted revenue growth of 22% and 31%, respectively, compared to the prior 12 months, despite the competitive nature of those markets.

Investcom impact

Excluding the R6 billion revenue impact from newly-acquired Investcom, the year-on-year growth in revenue would have been 32%, it said.

"Investcom contributed meaningfully to growth over the period since the acquisition and has been successfully integrated into the group. In addition, existing operations continued to perform well," it said.

MTN's revenue increased 49%, to R52 billion, when compared to the prior 12-month period. The South and East Africa region is still the largest contributor at 52%, followed by the West and Central Africa region and Middle East and North Africa region, at 41% and 7%, respectively.

Subscriber numbers for the year increased 73%, to 40 million. This includes a 38% increase in Investcom subscribers in the six months since July.

Earnings before interest, tax, depreciation and amortisation increased 53%, to R22 billion, off the comparative period. Adjusted profit after tax increased to R12 billion, compared to R7 billion for the nine months to December 2005.

Profitable year

A net profit of R12 billion was recorded for the full year. In the nine months to end-December 2005, a net profit of R6.7 billion was recorded.

Basic headline earnings per share rose to 606.5c for the period, 69% above the 359.8c for the nine months ended 31 December 2005.

MTN's balance sheet transformed substantially following the acquisition of Investcom, as well as the acquisition of additional shares in MTN Uganda, MTN Nigeria and other acquisitions during the year. These acquisitions had a material impact on its balance sheet, with a cash outflow of R28.7 billion and the issue of more than 189 million new shares.

Corresponding increases in tangible and intangible assets and long-term borrowings were also seen, said MTN.

The company declared a dividend of 90c, in light of its strong cash flow generation and financial position.