interim results for the period ended 30 june 2016

PowerPoint Presentation

MTN Group Limited Resultsfor the six month period ended 30 June 2016

#MTNGroup Limited results for the year ended 31 December 2014

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Overview: Phutuma Nhleko, MTN Group Executive Chairman


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Theres no question that the last six months are probably the most difficult weve experienced in the companys history and it was really a confluence of many negative things. The important thing is that we believe we have seen the worst of this perfect storm.


Compliance as a priority


In order to comply with subscriber registration processes, altogether we disconnected 18m subscribers (7.5m in this half alone) on a group-wide basis, starting in October last year.

We took a very conservative view that we really need to comply and decided to rather run the risk of impacting revenue than running the risk of non-compliance.

We have now virtually complied in all territories, and are happy to report that this phase is over.


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Growth of Tier 2 Countries


Despite flat growth in a number of countries, there are some bright lights on the horizon in the sense that tier two countries like Uganda, Cameroon and Ivory Coast have continued to grow quite substantially.

Despite numerous negative factors, the group continued to benefit from its significant scale and footprint and maintained its leadership position in 15 markets.


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A move towards data centric operations


Virtually all of our operations are becoming more data centric. Operations like Iran for instance over the next year or so will become more of a data company from a telecoms perspective.

We have seen substantial increases in data usage (32%) notwithstanding the tariff having dropped substantially over the period.


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Digital Services (click the video to watch)

If we look at what we refer to as new revenue streams, group digital services are quite key. We are significantly leveraging our brand and are effectively the largest distribution channel in Africa. Weve also made significant investments in our partnership with Rocket.


Mobile Money


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We have gained a great deal of traction on Mobile Money and believe operations such as Uganda and Ghana, that have been highly focused on this area and made concerted efforts to promote it, have been significantly rewarded through substantial revenue growth.

Mobile Money revenues are up by 40%.


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Opcos performing well


Iran has continued to perform very well and been a solid operation for us. Subscriptions have grown and revenue has increased by 8%. The Iran operation has seen data revenues increase by 65% and this is undoubtedly as a result of it being the market with the highest smartphone penetration.

Ghana has seen subscriptions increase by 8% and revenue increased by almost 19%.IranGhanaCameroonOff the back of a tough H2 last year, Cameroon has turned around with subscribers increasing by 5% and revenues increasing by 9%.


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Nigeria


In Nigeria, despite lost subscribers, we have increased our market share to 46%. This will be further fueled going forward, through huge rollouts of capacity, having secured the 2600MHz spectrum.

MTN plans to list its Nigerian Stock Exchange during 2017, subject to prevailing market conditions and appropriate regulatory approvals. We expected improved competitiveness and performance following reinstatement of regulatory services and for data performance to benefit from increased investments in 3G, LTE and recently acquired spectrum.


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Highlights from Brett Goschen: MTN Group Chief Financial Officer


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Our reported revenue and EBITDA were positively impacted by currency movements during the year, with the Rand on a relative basis being weaker across most of our markets.

Reported revenues have increased 14% whilst on an organic basis, revenue group was a subdued 1% while we worked our way through the regulatory requirements in a number of markets, a tough macro environment and tough competition.

Solid growth was achieved in data revenues across most operations and we are well placed to continue growing these streams going forward supported by the increase CAPEX and investment across the group.

Financial overview


Operating countryRevenue IncreaseGhana50% and higherCameroon50% and higherSouth Africa19%Iran50% and higherSudan50% and higher

Increase in revenue


Closing thoughts from SA Journalist: Duncan McCleod


thank you


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