SENS Note - 14 June 2001

M-Cell results for 12 months ended 31 Mar 01

Revenue increased 39% to R8.34bn (R6.01bn), operating profit was up 13% to R1.54bn (R1.37bn), and attributable earnings increased 21% to R713.5m (R588.6m). HEPS increased 47% to 74.5cps (50.7cps). M-Cell received a boost from strong subscriber growth in MTN's subscriber base, which helped the company exceed expectations. Most of the growth came from prepaid subscribers, meaning that the average revenue per user had dropped. MTN's subscriber base has surged 49% to 3.2m during the period under review, while the number of users from outside SA increased 166% to 290 000. M-Cell made a big investment during the beginning of 2001, by buying a cellphone licence in Nigeria for about R2.3bn. Nigeria's population of about 120 million people will create vast opportunities for the group. Outside SA, MTN also has operations in Cameroon, Swaziland, Rwanda and Uganda. The group is also considering participating in the bidding process for the second network operator licence (SNO) either directly or through appropriate structures. M-Cell is currently awaiting clarification of the regulatory environment which will allow it to determine the economic viability of the project.

Click here for original article