It may still be playing second fiddle to rival Vodacom on the home front, but South African cellular telecommunications services provider MTN is making major inroads into Africa where it now boasts almost seven million subscribers, providing
cellular, satellite and Internet access to 14 countries on the vast continent.
The group, which is invested in six global systems for mobile communications (GSM) networks in Africa — including South Africa, Swaziland, Rwanda, Uganda, Cameroon and Nigeria — now derives 36% of its revenue, 46% of its earnings before interest, tax, depreciation and amortisation (ebitda), and 38% of its adjusted headline earnings from its non-South African operations.
In the past year ended March, MTN International contributed R1,1-billion — just over half — of the group’s R2,057-billion net profit.
The bulk of this — R911-million — came from MTN Nigeria, with the remaining R81-million being contributed by MTN Cameroon.
Continuing to perform above expectations, the R6,972-billion revenue in total earned by MTN International’s five African operations over the past year represented a 197% improvement.
MTN Cameroon achieved a positive turn-around from March 2002 under a new management team. Revenue increased by 94% to R874-million while ebitda increased by 254% to R297-million. MTN Cameroon, with a subscriber base of 431 000 as at 31 March 2003, has an estimated market share of 54% in the Cameroonian mobile market.
MTN Nigeria recorded a strong set of results for its first full year of operations. Revenue increased from R1,316-billion to R5,361-billion year on year, generating ebitda of R2,088 billion and a R1,146 billion rand profit after tax.
With an estimated market share of 59%, MTN says MTN Nigeria has become an integral part of the socio-economic environment in Nigeria. Subscriber numbers increased from 327 000 as at 31 March 2002 to 1 037 000 as at 31 March 2003.
MTN Uganda also continues to deliver strong results despite intensifying competition. With a mobile market share of 71%, subscriber numbers have increased to 363 000, a 64% increase since March 2002.
MTN Rwandacell and MTN Swaziland are performing in line with expectations recording subscriber numbers of 105 000 (52% increase) and 68 000 (24% increase) respectively.
“We are extremely pleased by our continued growth reflected in these strong results,” says MTN Group CEO Phuthuma Nhleko, who adds that the group’s foreign operations are becoming more important as competition in South Africa — where Vodacom still rules the roost — drives down its margins. – I-Net Bridge