South Africa-based MTN Group has unveiled its financial results for the six months ended 30 June 2010, announcing an 11.4% increase in aggregate users, to 129.2 million subscribers. MTN hailed the subscriber increase as a result of ‘a solid performance in all aspects of the business’. However, group revenue decreased by 2.2% to ZAR56.0 billion (USD7.7 billion) year-on-year, while earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 1.1% to ZAR24.2 billion when compared to the same period one year earlier.
MTN operates in three regions: South and East Africa, West and Central Africa and Middle East and North Africa. The South and East Africa unit was the only operation to report an increase in revenue for the period: ZAR20.56 billion up from ZAR19.40 billion one year earlier, an increase of 6.0%. By contrast, MTN’s West and Central African operation saw revenues decline from ZAR26.76 billion to ZAR24.72 billion year-on-year – a decrease of 7.6%. MTN’s Middle East and North Africa regional operation witnessed revenues decreasing from ZAR11.06 billion to ZAR10.66 billion for the same period, a decrease of 3.6%. The West and Central African operation reported having the largest subscriber share for the period ending 30 June 2010, 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 controlled 28.66 million users as at 30 June.
Group President and CEO Phuthuma Nhleko commented: ‘The MTN Group Limited delivered a sound operational performance for the six months ended 30 June 2010. 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’.