SENS Note - 20 June 2003

MTN results for the year ended 31 Mar 03

The group reported a revenue figure of R19.4bn, up 56% from the figure reported in the previous financial year of R12.4bn. Gross profit for the year was 51% higher at R11bn (R7.3bn). Basic earnings per share were 223% higher, reported at 117cps (36.2cps) and headline earnings per share improved 97% to 142.8cps (72.5cps). An overall EBITDA margin of 32% for the group was recorded which compares favourably to last years 29.2%. The group's international operations recorded an overall EBITDA margin of 40.8%. MTN South Africa experienced a challenging year. MTN's post-paid subscriber base increased by a net 123 000 subscribers as a result. Overall, capable subscriber numbers increased steadily, with a growth of 22% to 4 723 000. The healthy subscriber growth in both segments can be attributed to several new product launches as well as very competitive pricing options during the year. MTN South Africa re-launched its pre-paid offering with several new tariff plans including MTN PayBack, a regressive pricing plan, aimed at enhancing subscriber loyalty. MTN International's operations continue to perform above expectations. All operations provided a positive contribution to profit after tax of R1194m. Assuming current market conditions continue, the board is confident that the group's operations will show satisfactory earnings growth in the year ahead. MTN South Africa is projected to grow their contribution to subscriber and earnings growth. The international operations are expected to maintain strong positive cash flows. In the face of a maturing local market, management is implementing strategies to optimise performance. The group is exploring value enhancing activities, in line with its vision of becoming the leading provider of communication services on the continent.

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