(formely M-Cell Limited) - Business Report 2003 - MTN Group

operations in local currency was substantially
higher than that in rand terms. The results of
MTN Cameroon do not reflect the same trend
due to the CFA being linked to the euro,
against which the rand did not perform as
strongly year-on-year. Regarding the Group’s
balance sheet, the closing rand/dollar
exchange rate at 31 March 2003 was R7,9
compared to the rate at 31 March 2002 of
R11,4. This strengthening by 30,7% needs to
be taken into account when performing a
comparative analysis from 2002 to 2003, as
both the assets and liabilities reflected in the
consolidated balance sheet pertaining to the
international operations would need to be
adjusted to give a fair comparison. As a result,
foreign currency translation reserves were
reduced by R930 million during the year,
compared to an increase of R375 million last
year. Table 4 on page 20 reflects an analysis of
the balance sheet at 31 March 2003 split
between MTN South Africa and the MTN
International operations to indicate the
proportion of assets and liabilities susceptible
to exchange rate movements.
Table 1
In the light of its ongoing international
expansion, the Group’s results have been, and
will increasingly be affected by fluctuations in
exchange rates.
The exchange rates applied in the conversion
of the results of the various foreign entities
into rand are presented in note 25 to the
Group financial statements.
3. INCOME STATEMENT
3.1 Revenues
Table 1 provides an analysis of revenues by
operation, indicating robust growth across
all markets in which the Group operates.
MTN Nigeria increased revenue to
R5,4 billion in its first full financial year of
operations, despite the impact of the
strengthening rand. Healthy growth
of 94% year-on-year was achieved in
MTN Cameroon. MTN South Africa also
grew strongly, recording increased
revenues of 23%. However, if handset
revenue is excluded, revenue grew by a
more modest 17%.
Revenue
% change
For the year ended 31 March % change local % of total
2003 2002 rand currency 2003
Rm Rm % % %
Wireless operations 19 270 12 331 56 n/a n/a
South Africa** 12 298 9 982 23 23 63
Cameroon 874 450 94 79 5
Nigeria 5 361 1 316 307 373 28
Rwanda 87 74 18 29 *
Swaziland 58 47 23 23 *
Uganda 585 462 27 31 3
Mauritius/International 7 — — — *
Satellite operation
Orbicom 135 101 34 34 1
Total 19 405 12 432 56 100
* Amounts less than 1%.
** Including MTN Network Solutions.
MTN BUSINESS REPORT 2003
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