Telecompaper

Africa and Middle East mobile operator MTN Group reported revenues up 9.2 percent to ZAR 111.9 billion for 2009, largely driven by subscriber growth. The Group's EBITDA increased by 6.7 percent to ZAR 46.1 billion for the year. Movements in foreign currencies had a negative impact on revenue of ZAR 10.9 billion and on EBITDA of ZAR 5.1 billion, MTN said. This was mainly due to the stronger South African rand. Net profit declined 4.3 percent to ZAR 14.65 billion, and EPS fell 3.6 percent to 791.4 cents, hurt by a rise in financing costs and negative currency effects. MTN's extensive network expansion resulted in capital expenditure for the year of ZAR 31.2 billion, a 10.6 percent increase on 2008. The final amount spent was lower than the ZAR 42 billion approved during the year due to a ZAR 7.2 billion expenditure rollover into 2010 and the stronger rand, which led to a ZAR 3.5 billion saving on capital expenditure. Cash generated from operating activities increased to ZAR 36.3 billion from ZAR 34.2 billion. Group CEO 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 roll-out 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 percent to 116.0 million, indicating a continuing demand for mobile services in countries where mobile penetration is still relatively low. For 2010, MTN forecast net subscriber additions of 20 million, with over half coming from Nigeria and Iran. The company said it's also actively looking for expansion opportunities in emerging markets, to diversify results and leverage its economies of scale.