MTN Reports 20 Million Subscribers
South Africa's MTN Group has reported that it now has over 20 million subscribers. The company also reported that its revenue increased by 25.2% toUS$2.6 billion, excluding the revenue contributed by the new acquisitions, revenue increased by 22.3%. EBITDA rose to US$1.1 billion and adjusted profit after tax to US$644 million. Says Phuthuma Nhleko, MTN Group CEO: "We are satisfied with our performance and progress during the period under review. The MTN Group has entered a new growth phase, having maintained shareholder value and secured three new operations."
During this reporting period, the MTN Group successfully concluded acquisitions in Cote d'Ivoire (51%), Zambia (100%) and Botswana (44%). The investment in Mascom of Botswana is currently accounted for as an associate, and as such the subscribers have been included in the Group subscriber numbers.
As at 30 September 2005, the new operations (including Botswana) added 1, 468, 000 subscribers, being 7% of the Group's 20.6 million subscribers. The full financial impact is not reflected as the acquisitions are not accounted for on the full reporting period.
MTN South Africa continues to achieve strong subscriber growth in both the postpaid and prepaid segments with subscribers totalling 8,961, 000 at 30 September 2005. The prepaid component of the subscriber base increased by 12% (811,000 net connections) during the last six months to 7,421,000, representing 82.8% (31 March 2005: 82.6%) of the total subscriber base. The postpaid base increased by a strong 11% from 31 March 2005 to 1,540,000 subscribers.
MTN South Africa launched broadband (3G and EDGE) services in June 2005. At present 3G coverage is available in the key metropolitan centres while 31% of the South African network is EDGE enabled. Data contributed 6.3% (2004: 5.5%) towards total revenue excluding handset revenue. As expected, because of the slower adoption of new services the majority of data revenue is still being generated by SMS.
MTN Nigeria increased its subscriber base to 7,667,000, a 38% growth since March 2005. The strong growth in subscriber numbers is fuelled by continued strong demand for telecommunication services and low connection fees. MTN Nigeria continues to hold the largest share of the market with an estimated 47% market share. MTN Nigeria's network roll out is proceeding as planned with the commissioning of 335 new base stations and two new switches during the six months. All profits generated by the business have been reinvested into the Nigerian operation.
MTN Cameroon increased its subscriber base to 1,129,000, a 23% increase from 31 March 2005. MTN Cameroon has maintained market leadership in a highly-competitive trading environment with an estimated market share of 54%.
MTN Cote d'Ivoire, trading as Telecel Cote d'Ivoire, recorded 932,000 subscribers as at 30 September 2005, and an estimated market share of 47%. The Group's acquisition of the 51% controlling interest in Telecel Cote d'Ivoire for US$214 million became effective on 1 July 2005.
MTN Uganda has maintained its leading market position and increased its mobile subscriber base to 895,000, a 14% increase from 31 March 2005.
MTN Rwanda increased its subscriber base to 256,000, a 22% increase from 31 March 2005. As a result of the privatisation of Rwandatel, which included the issue of a second mobile licence, competition is expected.
MTN Swaziland increased its subscriber base to 192,000, a 23% rise from 31 March 2005.
MTN Zambia recorded 91,000 subscribers on the 30 September 2005. The acquisition of the 100% interest for US$47 million became effective on 10 August 2005, 10% of which has been earmarked for placement in the local market.
Mascom Wireless Botswana Limited recorded approximately 445,000 subscribers on the 30 September 2005. The acquisition of the 44% equity interest for US$129 million became effective on 29 September 2005. The investment is accounted for as an associate.
As of 1 April 2005 all subscriber numbers reported are based on capable subscribers (subscribers who have made or received a revenue-generating call over a 90-day period).
On 21 November 2005, MTN acquired a 49% interest in IranCell and has already paid an up-front licence fee of US$355 million to the Iranian Ministry of Communications and Information Technology.
Says Nhleko: "Our entry into the Middle East has been made possible by our strong African footprint that has laid the foundation for our expansion beyond the continent. Our stake in IranCell offers significant growth potential as it is currently estimated that only 11% of Iranians are mobile subscribers."
Posted to the site on 25th November 2005
