MTN H110 revenue down two per cent, as it pays first interim dividend

MTN Group today reported financial results for the six months ended June 30, revealing an 11.4 per cent increase in aggregate users, to 129.2 million subscribers. Group revenue, however, decreased by 2.2 per cent to ZAR56.0 billion (US$7.7 billion) year-on-year, while earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 1.1 per cent to ZAR24.2 billion compared to the same period a year earlier. The operator said first-half profit increased 6.2 per cent to ZAR8.1 billion.

MTN announced it would pay an interim dividend for the first time as it signalled a change from its strategy of recent years to expand through major acquisitions, after posting higher first half net profit.

MTN, which in the past 12 months has had to walk away from talks with Bharti Airtel and Egypt’s Orascom Telecom, will pay a maiden interim dividend of 151 cents a share and increase its total annual dividend payout to 40 per cent of adjusted earnings per share.

MTN’s South and East Africa unit was the only operation to report an increase in revenue for the period: ZAR20.56 billion up from ZAR19.4 billion a year ago, an increase of six per cent. By contrast, MTN’s West and Central Africa operation saw revenues decline from ZAR26.76 billion to ZAR24.72 billion year-on-year – a decrease of 7.6 per cent.

The Middle East and North Africa region witnessed a revenue decrease from ZAR11.06 billion to ZAR10.66 billion for the same period, representing a slide of 3.6 per cent. The West and Central Africa operation counted the largest subscriber share for the period, with 59.36 million customers. In the Middle East and North Africa MTN reported 41.19 million subscribers, whilst the group’s South and East African operation counted 28.66 million users.

“The MTN Group delivered a sound operational performance for the six months ended June 30. This was the result of a solid performance in all aspects of the business, aided by high quality networks, robust and competitive distribution channels, attractive segmented product offerings and an increased focus on value added services,” commented group president and CEO Phuthuma Nhleko.