MTN reports solid H1 results, with revenues up 17.5%

South Africa based MTN Group has announced first-half revenues rose by 17.5 per cent to ZAR66.5 billion (US$8.1 billion), impacted by solid growth in South Africa, Iran and Ghana, as well as by foreign exchange gains. On a constant currency basis, group revenue grew 12.5 per cent year-on-year.

First half operating profit also rose, to ZAR21.641 billion, up 22 per cent year-on-year.

MTN’s subscriber base grew by 6.9 per cent year-on-year to 176 million.

Market conditions continued to be impacted by increasing levels of competition, regulatory requirements, political unrest in certain countries and the global economic slowdown. Growth in Nigeria was lower than anticipated as a result of intense competition.

Group EBITDA increased 18.2 per cent to ZAR29.8 billion. On a constant currency basis, EBITDA grew 12 per cent year-on-year. The growth in EBITDA was mainly due to strong organic growth in South Africa and Iran, which grew local currency EBITDA by 10.5 per cent and 36.4 per cent respectively.

Capex increased 77.7 per cent to ZAR10.14 billion, due mainly to an aggressive rollout programme implemented earlier in the year and the ongoing focus on critical capex investment programmes across the group’s operations.