MTN Group H1 revenue rises 10% to ZAR 506 bln

News Wireless Africa 8 AUG 2018
MTN Group H1 revenue rises 10% to ZAR 506 bln

MTN Group revenue increased by 9.7 percent on an organic basis to ZAR 62.78 billion in the first six months to 30 June. Service revenue increased by 10.2 percent excluding currency effects, supported by growth in MTN Nigeria (up 17.0%), MTN Ghana (up 27.9%), MTN South Africa (up 2.9%) and MTN Uganda (up 8.8%). MTN Cameroon and MTN Ivory Coast reported 7.0 percent and 6.6 percent declines in service revenue respectively. 

The group ended June with 223.4 million subscribers, up by 2.1 million from the end of March, and 71.2 million active data users. The number of active MTN Mobile Money customers increased to 24.1 million from 22.7 million three months earlier.

Group EBITDA increased by 17.0 percent on an organic basis to ZAR 22.34 billion in the first half, driven by increases of 31.5 percent, 5.7 percent and 34.7 percent at MTN Nigeria, MTN South Africa and MTN Ghana respectively and lower head office costs, which were partially offset by the performance of the WECA markets. The group EBITDA margin increased by 2.2 percentage points to 35.5 percent.

The group depreciation charge increased by 10.2 percent because of higher capex over the past few years. Amortisation costs rose by 17.6 percent, after higher expenditure on software in the previous period. Net forex losses declined by 60.3 percent because of lower losses in Nigeria after the operation settled a number of foreign-denominated expenses.

MTN reported headline earnings per share (HEPS) of ZAR 2.15 compared with ZAR 2.31 in the comparable period. HEPS were hit by a swing of ZAR 0.21 in associates and joint ventures, as well as ZAR 0.17 relating to the Nigeria fine interest (from ZAR 0.24 in H1 2017); hyperinflation (excluding impairments) of ZAR 0.27 (from ZAR 0.42 in H1 2017); and the impact of foreign exchange losses and gains of ZAR 0.21 (from ZAR 0.49 in H1 2017). Excluding these items, HEPS fell to ZAR 2.80 from ZAR 3.46.

Capex increased by 20.0 percent for the first half to ZAR 11.46 billion. MTN said it expects to spend around ZAR 25.5 billion over the full year. The company also declared an interim dividend of ZAR 1.75 per share. 

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