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

More documents

Recommendations

Info

MTN South Africa (continued) as voice Wireless Application Protocol (WAP). For the year, data revenue contributed 3,3% to total revenue. Although the take-up of data products is slower than anticipated, we are confident that these products will contribute to revenue in the year ahead and have a positive impact on earnings. NETWORK MTN South Africa has further expanded its network by building 170 new sites to provide additional capacity rather than extend geographic coverage, which already amounts to 75% of the country (65% land and 10% sea coverage) and reaches 96% of the population. Over the years, MTN South Africa has invested almost R8 billion in its network, ranging from switches to cellphone masts, and still spends approximately R1 billion a year on network capacity, upgrades, maintenance and limited geographic network expansion. Network efficiency, as measured by cumulative capital expenditure per subscriber, continued to improve and reduced by 8% to R1 845, from R2 003 last year.The dropped call rate is low by international standards, and although we are optimising current network capacity, we welcome the additional capacity that will be available from Government’s recently announced proposals for use of the 1 800 MHz band to improve network performance. EFFICIENCY DRIVE In addition to focusing on revenue growth, MTN South Africa is intensifying its programme to improve efficiencies and cut costs. Over the past two years we have reduced full-time staff numbers from 2 300 to about 2 000. CUSTOMER SERVICE MTN South Africa aims to differentiate itself from its competitors primarily through service and quality. The number of staff dedicated to servicing customers exceeds 1 200. Customer satisfaction is continuously monitored through a Customer Satisfaction Index measured by an independent research company. Ongoing service improvement has been noted over the year with a level of 84% achieved by year-end. In order to improve our understanding of our customer needs and to enable us to serve them better, we have initiated a process of systematically 300 250 200 150 100 50 0 400 350 300 250 200 150 100 50 0 PAGE 26 MTN BUSINESS REPORT 2003
gathering and analysing relevant customer information. An enterprise data warehouse is being set up as a key component of this process. LEGAL MATTER Telkom has lodged an application in court seeking, in the main, an interdict to stop MTN South Africa and others from providing certain least-cost router services. Having obtained legal advice, MTN South Africa is of the view that the application ought to be, and is being defended. PROSPECTS As the South African market gradually matures, growth in new subscribers will be relatively limited and growth rates in terms of earnings will similarly level off. Faced with these circumstances, management has been highly active in seeking new value opportunities and in maintaining an appropriate balance between volume and value. Our intensified focus on value and customer retention should ensure that the company grows its revenue in line with the overall market. 4 000 3 000 2 000 1 000 0 MTN SOUTH AFRICA For the year ended 31 March Number of subscribers (’000) 00 01 02 03 MARKET INFORMATION (ESTIMATES) (31 March 2003) ● Population 45 million ● Mobile penetration 27% OPERATIONAL ● Pre-paid/ post-paid mix 79%: 21% ● ARPU blended R206 pre-paid R101 post-paid R607 FINANCIALS 2003 2002 2001 Rm Rm Rm Revenue 12 298 9 982 7 870 EBITDA 3 389 3 191 2 535 PAT 1 485 1 452 1 234 Note: Financials and data reflect 100% of operation. The MTN Group interest was 100% as at 31 March 2003 (2002: 100%). MTN BUSINESS REPORT 2003 PAGE 27
Page 1 and 2: MTN Group Limited (formerly M-Cell
Page 3 and 4: FINANCIAL HIGHLIGHTS 2003 ● ●
Page 5 and 6: OUR VISION IS TO BE THE LEADING PRO
Page 7 and 8: MTN Footprint AS AT 31 MARCH 2003 E
Page 9 and 10: EXECUTIVE DIRECTORS 1. P F NHLEKO G
Page 11 and 12: Keeping pace with the technological
Page 13 and 14: MTN group values Values To realise
Page 15 and 16: Flashed, superheated air hotter tha
Page 17 and 18: for between 94,9% and 97,9% of the
Page 19 and 20: LOOKING AHEAD The positive results
Page 21 and 22: operations in local currency was su
Page 23 and 24: a deferred tax asset raised which i
Page 25 and 26: Table 5 Capital expenditure Capital
Page 27 and 28: Table 7 Group facilities Total Util
Page 29: In the post-paid market, MTN South
Page 33 and 34: (2002: R450 million). EBITDA was R2
Page 35 and 36: MTN RWANDA MTN Rwanda recorded plea
Page 37 and 38: MTN UGANDA MTN Uganda continues to
Page 39 and 40: products across the Group. Airborn
Page 41 and 42: GROUP BALANCE SHEET AS AT 28 FEBRUA
Page 43 and 44: SHAREHOLDER INFORMATION SPREAD OF O
Page 45 and 46: In a military-like manoeuvre of pre
Page 47 and 48: Details of attendance by directors
Page 49 and 50: DEALINGS IN SECURITIES All director
Page 51 and 52: of internal, financial and operatio
Page 53 and 54: ● No share options have been repr
Page 55 and 56: investment in five countries outsid
Page 57 and 58: Glossary of terms and acronyms Grou
Page 59 and 60: These regular visitors, who shape c
Page 61 and 62: DIRECTORS’ APPROVAL OF THE ANNUAL
Page 63 and 64: DIRECTORS’ REPORT FOR THE YEAR EN
Page 65 and 66: THE MTN GROUP SHARE OPTION AND INCE
Page 67 and 68: EQUITY COMPENSATION BENEFITS FOR EX
Page 69 and 70: DIRECTORS’ SHAREHOLDINGS The inte
Page 71 and 72: DIRECTORS’ EMOLUMENTS AND RELATED
Page 73 and 74: In addition, the Public Investment
Page 75 and 76: The Group’s investment in associa
Page 77 and 78: issue during the period and is base
Page 79 and 80: ● income and expenditure and cash
Page 81 and 82:
GROUP BALANCE SHEET AS AT 31 MARCH
Page 83 and 84:
GROUP STATEMENT OF CHANGES IN SHARE
Page 85 and 86:
1. BUSINESS AND GEOGRAPHICAL SEGMEN
Page 87 and 88:
2003 2002 Rm Rm 3. OPERATING EXPENS
Page 89 and 90:
2003 2002 Rm Rm 7. EARNINGS PER ORD
Page 91 and 92:
Information systems, furniture Netw
Page 93 and 94:
Other Connection intangible incenti
Page 95 and 96:
16. TRADE AND OTHER RECEIVABLES Bal
Page 97 and 98:
2003 2002 Rm Rm 20. BORROWINGS (con
Page 99 and 100:
2003 2002 Rm Rm 20. BORROWINGS (con
Page 101 and 102:
22. TRADE AND OTHER PAYABLES Trade
Page 103 and 104:
Carrying amount Fair value 2003 200
Page 105 and 106:
2003 2002 Rm Rm 31. CONTINGENT LIAB
Page 107 and 108:
40. CLASSIFICATION OF MTN MAURITIUS
Page 109 and 110:
COMPANY CASH FLOW STATEMENT FOR THE
Page 111 and 112:
7. RECEIVABLES Sundry receivables 7
Page 113 and 114:
INTERESTS IN ASSOCIATED COMPANIES A
Page 115 and 116:
R S DABENGWA (44) BSc (Eng), MBA Ex
Page 117 and 118:
Symbolizing the power of a leader,
Page 119 and 120:
Details of directors offering thems
Page 121 and 122:
4. That the maximum discount at whi
Page 123 and 124:
PROXIES A form of proxy which sets
Page 125 and 126:
This resolution is required to be p
Page 127 and 128:
APPENDIX TO THE NOTICE OF ANNUAL GE
Page 129 and 130:
FORM OF PROXY ONLY FOR USE BY REGIS
show all

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?