South Africa’s only listed mobile telecommunications operator, MTN Group, had a 45% rise in its adjusted headline earnings per share (Heps) for the full year ended March 2005 to 366,6 cents, from an adjusted Heps of 253,1 cents reported in 2004, the group said on Thursday.
The company — whose cellphone markets include Nigeria, South Africa and Uganda, where it is a second fixed-line operator — announced a final dividend of 65 cents per share, up 58,5% from a dividend of 41 cents it paid out in 2004.
The earnings results came in line with market expectations. An I-Net Bridge consensus of analysts forecast adjusted Heps at 368,1 cents and the group’s dividend at 69 cents per share.
The company’s subscriber base grew by 50% to 14,3-million in six countries where it operates, but it still lags Telkom’s Vodacom Group, which has 15,5-million users in five markets.
Group consolidated revenues grew by 21% to R29-billion during the year.
The contribution by the international operations to overall results rose a tad to 39% of revenue.
On the home front, where MTN’s arch-rival Vodacom has 12,8-million customers, MTN’s subscriber base jumped to 8,001-million users from 6,270-million customers in 2004 and 4,723-million in 2003. South Africa contributed a revenue increase of 17% to R17,8-billion.
During the period under review, MTN’s Nigerian subscriber base surged by 123% to 4,392-million while average revenue per user (Arpu) declined to $40 (about R250) per month from the previous $51 (R365). The West African country revenue’s grew by 34% to R9,3-billion despite forex dynamics during the period under review.
Having been stuck in Southern Africa since inception, Vodacom this year seeks not just to enter but also to oust MTN from the number-one spot in the Nigerian market, which Citigroup’s Smith Barney describes as “selling candy to children”, in that it offers huge opportunities for the operators.
MTN ascribed, in part, a 17% decrease in its effective tax rate to the fact that MTN Nigeria is still enjoying a five-year tax holiday.
Arpu fell across all operations, with South Africa’s declining to R184 per month from R203. In Cameroon, it fell a tad from $24 to $23 in 2005, while in Uganda it fell $3 to $22.
Closer to home, in the tiny kingdom of Swaziland — where MTN has a mobile telephony monopoly of 145 000 subscribers — Arpu decreased to R178 per month, from R223 per month last year. Cash-flush monarch King Mswati III is a 6% shareholder in MTN Swaziland.
Cameroon’s subscriber base rose to 863 000 from 581 000, with Uganda’s surging 45% to 719 000 while Rwanda remained stuck below the 200 000 mark and came in at 188 000, from 146 000 last year.
Turning to prospects, the listed entity said its vision is to be the leader in telecommunications in developing markets.
“To further consolidate its position on the continent and to diversify its investment portfolio, the group will continue to explore value-enhancing international expansion opportunities. Business opportunities complementary to the core mobile telephony business will also be pursued.”
MTN CEO Phuthuma Nhleko said: “”Looking ahead, we expect to continue to show good subscriber growth and maintain a strong market position in all our operations despite intensifying competition.
“While a meaningful capital expansion programme in Nigeria and South Africa is planned for the current financial year, this is likely to be fully funded by the operations and is expected to support further subscriber and revenue growth.” — I-Net Bridge