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

MTN International
LAZARUS ZIM
Managing Director
MTN International
HIGHLIGHTS
● SUBSCRIBER GROWTH OF 123% TO 2 MILLION
● REVENUE INCREASED BY 197% TO R7 BILLION
● ADJUSTED PROFIT AFTER TAX* INCREASED TO R1,2 BILLION
*ADJUSTED FOR DEFERRED TAX ASSET RAISED IN NIGERIA OF R161 MILLION
MTN International’s operations continue to
perform above expectations. Total revenue for
the year grew to R7 billion, a 197% increase
from last year’s R2,3 billion and EBITDA grew
to R2,8 billion compared with R0,4 billion in
2002. All operations made a positive
contribution to consolidated adjusted profit
after tax of R1 194 million before minority
interests.
While producing a strong set of results, the
Group’s international operations continue to
face challenges on interconnect payments,
currency fluctuations and regulatory issues.
These issues are constantly monitored and
remedial action is taken where necessary with
the respective local strategic partners.
MTN CAMEROON
Under the new management team which took
control in June 2002, MTN Cameroon achieved a
turnaround to profitability, recording a profit
after tax of R102 million compared with a loss of
R40 million in 2002 and revenue of R874 million
MTN CAMEROON
For the year ended 31 March
Number of subscribers (’000)
MARKET INFORMATION
(ESTIMATES) (31 March 2003)
● Population 16,5 million
● Mobile penetration 5,0%
OPERATIONAL
● Pre-paid/
post-paid mix 98%: 2%
● ARPU US$21
FINANCIALS
2003 2002 2001
Rm Rm Rm
Revenue 874 450 98
EBITDA 297 84 (18)
PAT 102 (40) (77)
Note: Financials and data reflect 100% of operation.
MTN International’s interest was 70% as at 31 March 2003 (2002: 100%). In terms of certain conditions of the disposal
agreements to local Cameroonian shareholders effective April 2002, 80% of MTN Cameroon’s economic risk still vests
with MTN International and therefore the Group’s results include 80% of the results of MTN Cameroon.
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MTN BUSINESS REPORT 2003