MTN profits rocket

The multinational's earnings before interest, tax, depreciation and amortisation (EBITDA) increased from R8.7 billion to R15,2 billion compared to the six-month period ended 30 June 2006, Phuthuma Nhleko, the group's chief executive officer, said this week.

He added that the profit was realized from an additional 9.6 million subscribers on its network, propelling their customer base to 48.2 million. He said the MTN group registered up to 20% increase in subscribers in 21 countries across Africa, Asia and Middle East, between December 2006 and June 2007.

“The former Investcom operations recorded subscriber growth of over 10 million since December 2006, contributing 22% of the group's total subscribers at 30 June 2007,” he said.

The group recorded revenue growth of 69% to R34,2 billion up from R20,2 billion as at June 2006. Nhleko said Investcom, its other operating unit, accounted for 35% of its revenue through a 21% revenue contribution between December 2006 and June 2007.

The group realized 9% of its revenue from positive effects of foreign currencies strengthening against the rand.

“Nigeria and South Africa were the key contributors, recording increases of 51% and 15% in revenue respectively for the six-month period to 30 June 2006,” Nhleko said.

He attributed Nigeria's massive contribution to the country's growth in local currency at 33%, and the strengthening of the naira against the rand, which contributed 18%.

“Nigeria reported high revenue growth due to increased subscriber numbers and newly introduced competitive offers in the last quarter of 2006, the group president said.

The group registered the highest growth in subscribers from Ghana (800,000), Sudan (457,000) and Syria (400,000). The company has few subscribers in Guinea Bissau, Cyprus, Zambia and Liberia among others, which have less than 300,000 subscribers.

Nhleko said the group's subscriber growth shows the strong opportunity it has in its new markets.