MTN profit up, eyes expansion
Sub-Saharan Africa’s biggest cellphone operator, MTN, posted a 26% rise in first-half adjusted headline earnings per share (EPS) and said it was seeking expansion opportunities in emerging markets.
The South Africa-based company said on Thursday adjusted headline EPS rose to 408,5 cents, in line with the company’s forecast for a rise of 23,3% to 28,3%, as subscriber numbers jumped 53% to 74,1-million.
Headline earnings, the main profit measure in South Africa, strips out non-trading, capital and some extraordinary items.
The company said it lost market share in its key market, Nigeria—to 43% from 44%—as it faces stiff competition from the arrival of Kuwait’s Zain Telecom.
Subscriber numbers in Nigeria increased 12% to 18,6-million. Growth also slowed in South Africa, where the market is maturing and competition is cut-throat, with a 5% rise in subscribers to 15,6-million.
MTN kept average prepaid revenue per user (ARPU) in South Africa stable at R92 rand while contract ARPU rose R9 to R405.
MTN, which operates in more than 20 countries in Africa and the Middle East, held failed merger talks this year with India’s Bharti Airtel and Reliance Communications and some analysts say it could still fall prey to a foreign buyer.
MTN said on Thursday it would focus on expanding in emerging markets.
MTN has been banking on its new venture in Iran, which some investors deem risky given its nuclear stand-off with the West, to boost subscribers as growth in Nigeria and South Africa slows. It said Irancell boosted its subscriber base by 93% to 11,6-million.—Reuters
