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MTN Revenues and Profits Down on Currency Fluctuations
South Africa's MTN Group has reported full-year revenues up by 9.2% to R111.9 billion (US$15 billion), although it would have been a further 11 points higher had currency changes not affected the South African Rand and Nigerian Naira.
Net profit slipped to R14.65 billion (US$1.97 billion) from R15.32 billion in 2008.
The Group's EBITDA increased by 6.7% to R46.1 billion for the year. When compared to December 2008, the fluctuation in foreign exchange rates had a negative impact on reported EBITDA of R5.1 billion, or 12 percentage points. The one percentage point reduction in EBITDA margin was mainly due to an increase in the revenue share costs in Syria, as well as the impact of reducing fixed to mobile interconnect traffic and the integration and outsourcing costs in South Africa.
MTN Group President and CEO Mr. Phuthuma Nhleko said: "The solid performance of MTN operations in most of the countries in which the Group has a presence was achieved despite economic challenges, increased regulatory changes and growing competition. Continued delivery in accordance with an aggressive network rollout strategy remained key throughout 2009, enabling MTN to maintain or improve its market share in most of its operations. Better distribution and a focus on segmental product offerings were other contributory factors. As a result, subscribers increased by 28,0% to 116,0 million for the period under review, indicating a continuing demand for mobile services in countries where mobile penetration is still relatively low".
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