Strong MTN looks to more growth

BUSINESS

With a strong six months under its belt, MTN says it is looking to grow shareholder value, with North African expansion a possibility.

MTN Group said in delivering its financial results for the six months ending June 2011 that it had seen a satisfactory operational performance, with subscriber growth of 7.5% to 152.3 million and revenue 1.3% higher to R56,542 million.

There was strong subscriber growth in most of the group’s operations, including an encouraging performance in Sudan. MTN said the period had been characterised by growing competition and decline in voice and data tariffs.

Delivering, the results, Group President and CEO Sifiso Dabengwa said highlights included the implementation of Mobile Money in 12 countries and the conclusion of the first tower deal.

At 30 June 2011, there were 5.1 million registered mobile money subscribers, with Uganda and Ghana each accounting for 37% of the total.

MTN said the conclusion of the tower deal by MTN Ghana marked the start of true infrastructure sharing and opportunities to unlock value. The company said other projects of this nature are under consideration.

Adding to MTN’s revenue streams during the period under review were continued investment in transmission (undersea cables and fibre) and radio technologies (2G, WIMAX and 3G) as well as mobile data solutions and sourcing of appropriate handsets.

Data revenue (excluding SMS) overtook SMS revenue for the first time and now contributes 6.3% and 6.0% respectively of total revenue.

On the question of mandatory SIM registration, MTN said with the South African registration deadline having passed, it had suspended 380 842 SIMs. With the Nigerian deadline 28 September, it had 50% of the base registered and with the Ghanaian deadline now 30 September, it had 90% of its base registered.