MTN Group posted a 10.7 percent increase in revenue for the first half to ZAR 72.76 billion, as growth in smaller countries helped offset a cut to interconnection rates in its home market South Africa and a temporary sales ban in Nigeria. Good growth was experienced in data and MTN Mobile Money usage, but voice revenue continued to be impacted by aggressive competition, regulatory pressures and a weakening economic environment in key markets, the mobile operator said.
On a constant currency basis, revenue was up 4.1 percent from a year earlier. Subscribers rose 3.5 percent to 215 million at the end of June, and data subscribers increased by 7.3 percent over the same period to 88.5 million. MTN also counted 18.4 million mobile money users at the end of the period, up by 24.3 percent year-on-year.
EBITDA increased by 19.6 percent to ZAR 33.66 billion, excluding the profit on tower sales, and the EBITDA margin expanded by 3.5 percentage points to 46.3 percent, driven by cost-containment initiatives. Distribution costs, inclusive of commissions, service provider discounts and marketing costs were significantly reduced, MTN said, while staff costs were lat year-on-year. The higher EBITDA margin was supported by increased margins in Nigeria (1.9pp), Syria (2.4pp) and Sudan (3.5pp).
Depreciation increased by 20.7 percent as a result of the accelerated capex roll-out in the second half of 2013, particularly in Nigeria and South Africa. Amortisation costs increased by 22.1 percent, driven by increased spending on software in Nigeria, Ghana and Uganda. Basic headline earnings per share still increased by 9.0 percent to ZAR 7.29 and attributable earnings per share rose by 4.4 percent to ZAR 7.31. MTN increased its interim dividend by 20.3 percent to ZAR 4.43 per share.
Capex in the first half decreased by 28.1 percent ZAR 9.2 billion. MTN said spending should accelerate in the second half in most markets. Operating cash flow was up 17.3 percent year-on-year to ZAR 30.1 billion. MTN slightly increased it starget for net subscriber additions this year to 17.25 million, from an earlier estimate of 16.75 million.
