With a market cap of R385bn, mobile telecoms group MTN is one of the JSE’s giants, so the release of its financial results is always an occasion. Especially this time after concerns over its Nigerian operation – the top profit contributor – and market share reverses in its home base of South Africa affected expectations. Although the impact of the oil price crash is a serious concern for Nigerians, in SA the news is more encouraging. Click here for the MTN’s full SENS report. – AH(Bloomberg) — MTN Group Ltd., Africa’s largest wireless carrier, said full-year profit gained 8.9 percent as data revenue growth and a recovery in South Africa helped offset tougher competition and regulation.
Headline earnings per share, which exclude one-time items, were 15.36 rand in 2014, the Johannesburg-based company said in a statement on Wednesday. Sales increased 6.4 percent to 146 billion rand. Subscriber numbers are forecast to rise 17.5 million in 2015 to 240.9 million across MTN’s 22 markets in Africa and the Middle East.
“The Group continued to benefit from encouraging growth in non-voice revenue, driven by various data initiatives, including the mobile money,” the company said in the statement. “MTN South Africa’s performance was in line with our expectations and provided clear evidence in the second half of a successful turnaround.”
MTN has been exploring acquisitions as it seeks to increase smartphone penetration and boost data revenue outside South Africa, where it trails crosstown rival Vodacom Group Ltd. in terms of subscriber numbers. The company agreed to sell more than 9,000 Nigerian towers to IHS Holding Ltd. in September.
The shares gained 1.2 percent on Tuesday to 208.46 rand, valuing the company at 385 billion rand. The stock is 5.9 percent lower this year, compared with a 6.2 percent rise at Vodacom. MTN will pay a final dividend of 8 rand a share. – BLOOMBERG
From Reuters
JOHANNESBURG, March 4 (Reuters) – Africa’s largest telecoms provider MTN Group posted an expected 8.7 percent rise in full-year earnings on Wednesday after a revenue boost from its key Nigeria market, but warned of possible headwinds due to the uncertainty wrought by oil prices.
MTN said diluted headline earnings per share rose to 1,527 cents in the year to end-December, from a restated 1,404 cents a year ago.
MTN had guided that headline earnings per share, the main measure of profitability in South Africa, would come in 5-15 percent higher.
Revenue grew 6.4 percent after MTN, which has operations in nearly two dozen countries, attracted 7.5 percent more customers to 223.4 million subscribers.
