JOHANNESBURG -(Dow Jones)- MTN Group, the largest mobile phone operator in sub-Saharan Africa, Wednesday posted a 16% rise in net profit, reflecting subscriber growth and the acquisition of Investcom.
The Johannesburg-based company said net profit attributable to shareholders was 5.56 billion rand ($763.1 million) for the half-year against ZAR4.8 billion in the first six months of 2006.
Revenue for the period was 69% higher at ZAR34.21 billion.
MTN, which last year bought emerging market operator Investcom for more than $5.5 billion, said its subscriber base grew 20% since the end of December to 48.2 million subscribers by the end of June.
The company had cautioned at the time of its 2006 results, released in March, that while it would continue to see healthy subscriber growth this year it would also see "earnings consolidation" in 2007 due to the end of a tax holiday in Nigeria and the dilution impact of additional shares issued to fund the Investcom buy.
MTN operates in 21 countries in Africa and the Middle East.
Its shares closed Tuesday at ZAR101.99, up 20% on the start of the year. Shares in fixed-line operator Telkom SA, which co-owns South African mobile operator Vodacom with the UK's Vodafone Group, have risen 16% in the same time.
-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; robb.stewart@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 29th August 2007
Posted to: www.cellular-news.com/story/25694.php