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MTN forecasts stronger growth in H2
2013-08-14 09:22:00| Telecompaper Headlines
(Telecompaper) MTN Group reported a 9.8 percent increase in revenue for the first half of 2013 to ZAR 65.24 billion, despite a negative impact from regulatory tariff cuts in its largest markets Nigeria and South Africa. Revenues were helped by the weaker rand versus the dollar, with organic growth at 1.9 percent. EBITDA increased 6.4 percent to ZAR 27.74 billion, and the EBITDA margin was stable at 42.5 percent after excluding the profit from tower sales in Ivory Coast and Cameroon. Group subscribers increased 6.5 percent year-on-year to 201.5 million at the end of June. At the end of July, the mobile operator recorded a total of 200 million subscribers after adjusting for the 3.2 million disconnections in Nigeria related to the mandatory subscriber registration programme there, which closed on 30 June. Group depreciation increased by 19.0 percent as the group accelerated its capex, and amortisation costs rose by 32.5 percent, driven by increased spend on software. Headline earnings per share still increased 22.0 percent to ZAR 6.54, and reported EPS was up 19.0 percent to ZAR 6.84, helped by a one-time forex effect from the reclassification of a loan to MTN Syria. MTN's capex increased 32.7 percent to ZAR 12.79 billion over the six months, as it added 2,130 2G and 1,800 3G sites in the period. MTN expects improved organic growth in revenues and EBITDA in the second half of this year. While South Africa will remain difficult, the Nigerian market should improve, and overall MTN still expects to add 21.1 million new customers in 2013. The company increased its interim dividend by 15.3 percent to ZAR 3.70 per share.
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Category:Telecommunications