MTN reports ‘solid progress in challenging year’
MTN Group says its results for the year ended 31 December 2012 reflect solid progress in growing subscribers, revenue and EBITDA.
MTN says its results for the year ended 31 December 2012 reflect solid progress in growing subscribers, revenue and EBITDA. The year was characterised by the continued global economic slowdown, increasingly competitive mobile markets as well as regulatory and political challenges.
It says the new MTN Group structure, put in place in early 2012, which sees the business split into key pillars, namely South Africa, Nigeria and the ‘Large and Small Opco Cluster’, has enabled more focused management and better execution of strategies across the various business units.
Over the past year, subscribers increased 15,1% to 189,3 million.
Revenue for the year increased 10,9% with the majority of its operations delivering strong organic growth. Organic revenue growth for all operations excluding Nigeria increased 12,3%. Despite a challenging period for Nigeria following significant tariff declines amid heightened competition, the last quarter of 2012 delivered consistent month-on-month growth, highlighting the strong underlying demand.
MTN said it had delivered on its commitment to accelerate network rollout, with 7 168 (3 685 2G and 3 483 3G) sites delivered during the year, a significant improvement on the 4 126 sites completed in 2011.
After a challenging 2012, the Group says it is well positioned for 2013. “We expect to deliver continued organic growth in both revenue and EBITDA and anticipate reaching the milestone of 200 million subscribers by mid-year. The recovery in the performance of our key Nigerian operation is expected to continue throughout 2013. This together with a lower tax rate and the benefits of the substantial network investment made in 2012 across all operations, which is to be continued in 2013, is likely to support growth in reported earnings in 2013. We continue to explore value accretive M&A activities.”