SENS Note - 29 October 2018
MTN - quarterly update and cautionary renewal
 
MTN is a leading emerging market mobile operator, serving 225.4 million people in 21 countries across Africa and the Middle East. The group's vision is to deliver a bold, new digital world to its customers. MTN's belief is that everyone deserves the benefits of a modern connected life.

Salient features
  • Group subscribers increased quarter-on-quarter (QoQ) by 2.5 million to 225.4 million
  • Active data subscribers increased QoQ by 5.0 million to 74,2 million
  • Active MTN Mobile Money customers increased QoQ by 1.7 million to 25.8 million
  • Group service revenue increased year-on-year (YoY) by 10.0%
  • Group data revenue increased YoY by 23.9%
  • MTN South Africa service revenue increased YoY by 3,0% with an EBITDA margin of 34.5%
  • MTN Nigeria service revenue increased YoY by 17.4% with an EBITDA margin of 43.2%
  • MTN Ghana service revenue increased YoY by 22.9% with an EBITDA margin of 37.6%
  • MTN Irancell service revenue increased YoY by 14.1% with an EBITDA margin of 35.3%

Update on the Nigerian matters
During the quarter, the Central Bank of Nigeria (CBN) alleged improper dividend repatriations by MTN Nigeria between 2007 and 2015 of US$8,1 billion while the Attorney General of the Federal Republic of Nigeria (AGF) alleged unpaid taxes on foreign payments and imports of approximately USD2.0 billion.

MTN Nigeria continues to deny these allegations and claims. To protect MTN Nigeria's assets and shareholder rights within the confines of Nigerian law, we applied in the Federal High Court of Nigeria for injunctive relief restraining the CBN and the AGF from taking further action in respect of their orders, while we continue to engage with the relevant authorities on these matters. We remain resolute that MTN Nigeria has not committed any offences and will continue to defend this position vigorously.

Shareholders are referred to the cautionary announcement dated 30 August 2018 and the subsequent renewal of cautionary announcements, the latest of which was released on 23 October 2018. Shareholders are advised to continue to exercise caution when dealing in the company's securities until a further announcement is made.
 
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