/ 19 March 2008

MTN boosts 2007 profit on 53% subscriber jump

Sub-Saharan Africa’s biggest mobile phone operator MTN boosted 2007 adjusted headline earnings per share to 682 cents from 585 cents thanks to a 53% jump in subscribers to 61,4-million.

The company said in a statement on Wednesday earnings before interest, tax, depreciation and amortisation (EBITDA) rose 42% to R31,8-billion and sales rose 42% to R73,1-billion.

MTN said net profit and basic headline EPS fell compared with the previous year due to higher finance charges and higher taxes after a tax holiday in Nigeria ended.

Adjusted headline EPS, on which the company focuses, strips out certain financial, non-trading and one-off items, such as the impact of the Nigerian tax break.

MTN did not give detailed forecasts for 2008 but said prospects remained positive in its key markets.

The company, which has pursued an aggressive acquisition spree in risky but lucrative African and Middle East countries, said it was actively seeking expansion opportunities in emerging markets.

MTN said its business in Iran, which it launched late in 2006 — worrying some investors due to the country’s nuclear stand-off with the West — boosted subscribers to six million at the end of 2007 from 154 000 a year earlier. Average revenue per user there rose to $10 from $9. – Reuters