MTN Group profits up

MTN Group posted a one per cent growth in revenues to the tune of SAR56.5m (Rwf4.6b) in the first six months of the year due to strong growth in MTN’s South African and Iranian operations of 5.9 per cent and 12.1 per cent, respectively. According to the Group’s financial report for the second quarter of 2011, the results were offset by negative growth in Ghana and Syria but with no growth in Nigeria. MTN South Africa delivered a sound performance for the period increasing its subscriber base by 5.1 per cent to 19.8 million for the six months to June 2011, the report said. This was attributed to growth in the prepaid segment which increased its subscriber base by five per cent to 16.2 million subscribers helped by MTN Zone Mahala offerings and strong promotional campaigns. MTN Rwanda, a member of the 21 MTN group operations, contributed a 26.9 per cent increase in subscriber base from 2.2 million users to almost 2.8 million by end of the first six months since January. “The achievement is attributed to new products on the market like mobile money and the reduced tariffs on all platforms and aggressive promotions,” MTN Rwanda’s Corporate Communications Manager, John Bosco Sendahangarwa noted. In the same period, Nigeria’s subscriber base grew by 4.8 per cent to 40.5 million attributing the results to aggressive competition. “Airtime and subscription revenue remain the key contributors comprising 66.1 per cent of the group’s total revenue despite decreasing 2.8 per cent year on year,” the report stated. Interconnect revenue grew by 3.8 per cent as lower termination rates in South Africa were more than made up for by incoming traffic increases in Nigeria. Data growth, excluding SMS, increased by 24.1 percent to SAR3.5 million (Rwf293.1million) as most of the larger operations enhanced their propositions both from a network and product perspective. “Group operating costs decreased 1.3 per cent mainly as a result of a 14.6 per cent reduction in selling, distribution and marketing costs. These costs also include the SAR445m (Rwf36.6 billion) profit on the sale of the towers as well as the SAR147m (Rwf12.1 billion) Guinea Conakry settlement,” the report said. Ends

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MTN Group profits up