| SENS Note - 22 November 2001 |
| M-Cell results for 6 months ended 30 Sep 01 |
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Revenue increased 34.5% to R5.17bn (R3.84bn), operating profit was 2.9% higher at R724.8m (R704.7m), but attributable earnings was 23.9% lower at R237.7m (R312.5m). The decline in attributable earnings arose mainly from the amortisation of goodwill of R291.8m (R120m), which was from the acquisition by M-Cell of Transnet's 23% interest in MTN. HEPS was up to 32.6cps (30.9cps). M-Cell again experienced good growth, driven by a strong performance from its wholly owned subsidiary, MTN, which saw its total revenue generating subscriber base reach the 4m mark. MTN South Africa's subscriber base grew by 32.6% to 3.54m (2.67m at 30 Sep 00). The rate of pre-paid subscriber growth in the 6 months to Sep 01 was lower, reflecting a degree of maturity entering the SA pre-paid market and the company's increasing focus on quality rather than quantity of subscribers. In the high value contract segment, however, MTN South Africa achieved a significant increase in the number of contracts signed. In line with the company's strategy of diversifying its telecommunications business into selected African countries, MTN Nigeria launched in Aug 01. The company is exhibiting strong growth and is approaching the 100 000 subscriber mark. MTN now operates in a total of 5 African countries outside of SA and is regarded as one of the leading Africa wide cellular operators. MTN's international operations contributed R449m in revenue, being 8.7% of total revenues, and are expected to experience even faster growth in the second half of the year now that MTN Nigeria is fully operational. The SA cellular market has continued to show strong growth even though penetration has exceeded 18%. MTN's network now reaches 92% of South Africa's population providing the foundation for continued growth prospects. MTN's international operations are well placed to provide an increasingly important contribution to group earnings. Three of MTN International's operations are already profitable, while Nigeria and Cameroon are expected to be positive during the next financial year. |
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