Solid Ghana growth pushes MTN Group’s 2012 first half revenue to $8.1b
MTN Group today August 8, 2012 said its 2012 first-half revenues rose 17.5% to reach 66.4 billion rand ($8.1 billion), driven by solid growth in Ghana, Iran and South Africa.
According to the South-African-based telecoms firm, Ghana recorded a revenue growth of 19.9%, Iran 29.9% and South Africa 9.5%.
“Group revenue increased by a healthy 17.5% to 66, 426 million rand due to solid growth in South Africa, Iran and Ghana of 9.5%, 29.9% and 19.9% respectively,” the Group said in its reviewed interim results.
Nigeria’s reported revenue grew 16.5%.
On a constant currency basis, MTN’s revenue grew 12.5% as local currency revenue in Iran and Ghana increased 28.3% and 22.4% respectively while Nigeria’s local currency revenue grew 4.4%.
The results showed that MTN Ghana delivered a strong performance with subscribers increasing by 5.9% to 10.76 million despite aggressive competition. “This performance was largely due to attractive segmented promotions across the product portfolio and a well-managed pricing strategy. A stronger economy also assisted growth,” the Group stated.
However, MTN Ghana’s market share declined to 51% during the half year and this was “as a result of the entry of a new mobile player into the market”.
Total cedi revenue increased by 22.4% and this, the results indicated was mainly driven by an 18.8% increase in airtime and subscription revenue, which benefited from promotions driving usage, and spend. Data revenue grew by 193%, albeit off a low base, due to handset and data promotions.
MTN Ghana’s earnings before interest, taxes, depreciation and amortization (EBITDA) margin dipped slightly from 38.7% at June 30, 2011 to 37.7% due to increased rent and utilities from the leasing of the 400 towers previously sold.
On the Ghana 3G market, the interim results observed that it is becoming increasingly competitive with the five mobile operators all investing considerable resources to upgrade or expand their 3G networks. This is partly driven by the rising demand for broadband services and the increasing usage of smartphones, it adds.
By Ekow Quandzie