SENS Note - 23 March 2006

MTN final results December 05

MTN Group has changed its financial year end to 31 December in line with its operational cycle and to align itself with its international peer group. The group reported its final audited financial results in accordance with IFRS for the first time. Results for the prior period, being the year end to 31 March 2005, have therefore been restated. Although not directly comparable with the prior 12-month period ended 31 March 2005, revenue for the current period of R27.2 billion compared favourably to revenue of R29 billion for the prior 12-month period, while EBITDA of R11.2 billion also demonstrated sound growth when compared to the EBITDA of R12 billion (restated) for the prior 12 month period. The group's total assets have increased by 50.7% to R44.8 billion compared to R29.7 billion (restated) at 31 March 2005. Long-term borrowings increased to R7.5 billion (R3.0 billion), while interest bearing short-term borrowings increased to R1.1 billion (R221 million). Operating cash flow (before dividends) of R10.3 billion was generated, with free cash flow (being operating cash inflows less capital expenditure) of R 3.9 billion being recorded. MTN reported headline earnings per share of 359.8c for the nine months to 31 December 2005 compared with 366c for the 12-month period ended 31 March 2005. MTN South Africa continued to achieve strong subscriber growth in both the postpaid and prepaid segments with subscribers increasing by 28% to 10 235 000 at 31 December 2005. The prepaid component of the subscriber base continued to drive this growth and increased by 30% or 1 971 000 net connections to 8 581 000 subscribers representing 83.8% (82.6%) of the total subscriber base. The postpaid base increased by 19% over the nine-month period to 1 654 000 subscribers. In line with its vision of consolidating its position as the leading provider of telecommunications services in developing markets, the MTN group during the period successfully concluded acquisitions in Cote d'Ivoire (51%), Zambia (100%) and Congo Brazzaville (100%), which are being consolidated as subsidiaries, as well as in Iran (49%) and Botswana (44%), which are being proportionally consolidated as joint ventures. As at 31 December 2005, these new operations accounted for 1 866 000 subscribers, being 8% of the group's 23.2 million subscriber base. Prospects MTN's vision is to be the leader in telecommunications in developing markets. The group currently has operations in 10 countries across Africa, and commencement of commercial operations in Iran is expected in the second half of 2006. In order to further consolidate its position on the continent and to diversify its investment portfolio, the group will continue to explore value- enhancing expansion opportunities principally in Africa and the Middle East. Opportunities complementary to the core mobile telephony business will also be pursued. On the assumption that current market conditions endure, the board expects the group to continue to show good subscriber growth, maintain a strong market position in all of its existing operations and deliver sustainable and increasing medium to long term returns to its shareholders. Capital expansion programmes in Nigeria, South Africa and Iran are expected to provide further impetus to subscriber and revenue growth. As a consequence, the board expects continued satisfactory growth in earnings for the year ahead. Dividend In light of the group's strong free cash flow generation, especially by the South African operation, coupled with its strong financial position, a dividend of 65cps has been declared.

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