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MTN posts higher subscriber rates, Ramaphosa steps down

6th March 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JSE-listed telecommunications group MTN added 15.1% more subscribers, reported 10.9% higher revenue and increased earnings before interest, taxes, depreciation and amortisation (Ebitda) across its operations during 2012.

The JSE-listed group on Wednesday said the number of subscribers on its network reached 189.3-million during the 2012 financial year, up from 164.5-million in 2011.

In South Africa, the company added 3.3-million subscribers amid intensifying competition, with overall subscriber numbers in the country reaching 24.4-million, up from 22-million in 2011.

The company’s Nigeria operations added almost six-million new subscribers, with overall numbers reaching 47.4-million during the year under review, from 41.6-million the year before.

MTN planned to add another 21-million subscribers over the next year – including almost three-million in South Africa and seven-million in Nigeria – and aimed to host 200-million subscribers across the group by mid-year.

The group’s ‘large opco cluster’, which comprised Iran, Ghana, Cameroon, Côte d’Ivoire, Uganda, Syria and Sudan, collectively held 87-million subscribers, up from 76-million in the prior year.

The group’s ‘small opco cluster’, which comprised Yemen, Afghanistan, Benin, Congo, Zambia, Conakry, Rwanda, Cyprus, Liberia, Botswana, Bissau and Swaziland, had 29-million subscribers by year-end, up from 25-million in 2011.

Group revenue increased by 10.9%, from R121.8-billion in 2011, to R135.1-billion in the year under review.  Voice revenue rose 7% to R85-billion and data revenue increased by 58.5% to R14.6-billion.

MTN’s South Africa operations contributed R41.3-billion in revenue, up 7% on the R38.6-billlion reported in 2011 and, despite a significant decrease in prices during the year, Nigeria closed the year off with revenue of R38.6-billion, up 10.9% on the R34.8-billion in the prior year.

The ‘large opco cluster’ generated revenue of R37.8-billion in 2012, up 9.4% from the reported R34.5-billion revenue in 2011, while revenue from the ‘small opco cluster’ increased by 25.6% from R14-billion during 2011, to R17.7-billion in 2012.

Meanwhile, group Ebitda increased by 7% to R58.5-billion during the year under review and included the R587-million profit from tower sales during the year. This was higher than the R54.7-billion Ebitda the year before.

Attributable earnings a share increased by 0.6% to R11.26 and headline earnings a share increased by 1.9% to R10.89.

MTN reported that group capital expenditure (capex) during the year under review increased by 65.9% from R17.7-billion to R30.1-billion, with Nigeria accounting for R13.7-billion – more than double the R6.3-billion spent in the country in 2011.

Capex in South Africa was up 56.3% to R6.4-billion, while the large and small opco clusters received R6.2-billion and R3-billion respectively.

In total, MTN rolled out 7 168 sites – 3 685 second-generation (2G) and 3 483 third-generation (3G) sites – during the year, compared with the 4 126 sites completed in 2011.

The South African operations added 300 2G and 1 087 3G sites, as well as 281 long-term evolution sites. Nigeria received 1 414 2G and 1 175 3G sites.

During the next financial year, the company planned to inject R28.2-billion of capex into its various operations, including R5.7-billion and R13-billion in South Africa and Nigeria respectively. More than R5-billion would be invested into the large opco cluster and just under R2.4-billion would be allocated to the small opco cluster.

MTN declared a final dividend of 503c for the 2012 financial year.

Meanwhile, MTN current nonexecutive director and chairperson Cyril Ramaphosa was expected to retire from his duties at the telecommunications group at the forthcoming annual general meeting in May.

Lead independent director Alan van Biljon, in consultation with the nominations committee, was tasked with identifying a suitable successor to Ramaphosa, who had been serving as MTN chairperson since 2002.

The 59-year-old African National Congress (ANC) deputy president had started stepping down from several company boards to avoid any potential conflicts of interest after his political appointment at the elective conference of the ANC in Mangaung, in December.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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