Group finance director's report continued - MTN Group

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MTN Group revenue December 2009 5 MTN Integrated Business Report ⁄ 31 December 2009 ⁄ Performance overview Rm December 2008 Rm % change Local currency % change Revenue by region Iran 7 625 4 935 54,5 60,0 Syria 6 987 6 508 7,4 8,2 Other operations 6 913 5 771 19,8 Middle East and North Africa 21 525 17 215 25,0 Nigeria 33 326 31 558 5,6 30,0 Ghana 5 667 6 047 (6,3) 25,1 Other operations 11 550 10 078 14,6 West and Central Africa 50 543 47 682 6,0 South Africa 33 149 32 148 3,1 3,1 Other operations 6 520 5 335 22,2 South and East Africa 39 669 37 483 5,8 Head office companies 210 146 43,8 Total 111 947 102 526 9,2 MTN Group revenue increased by 9,2% to R111,9 billion (2008: R102,5 billion), driven largely by the strong growth in the subscriber base. When prior year FX rates are used, 2009 revenue was negatively impacted by R10,9 billion due to foreign exchange currency movements. When local currency growth in the various markets is analysed, it is evident that growth remained robust, indicating a sound operational performance despite the weak rand reported numbers. MTN’s major markets, with the exception of South Africa and Syria, enjoyed growth above 20% with Iran showing an increase of 60%. Due to the very high level of competition, it was especially pleasing that Ugandan growth was still strong at 26,4%. The slower growth in revenue in Syria was due to subscriber acquisitions lagging in the first half of the year resulting in limited revenue contribution from the substantial increase in subscribers in the second half of the year. 111 947 2009 7 548 Nigeria FX impact on revenue FX impact ZAR 10,9 billion 1 738 Ghana 1 653 Other 122 886 Rev @ PY FX 19,9% 102 526 2008 Performance overview Glossary Financial statements Shareholder information
Group finance director’s report continued Revenue analysis 6 MTN Integrated Business Report ⁄ 31 December 2009 ⁄ Performance overview December 2009 December 2008 % change Airtime and subscription 76 814 70 963 8,2 68,6% 69,2% Data 3 329 2 690 23,8 3,0% 2,6% SMS 5 437 4 394 23,7 4,9% 4,3% Interconnect 19 516 18 364 6,3 17,4% 17,9% Cellular phones and accessories 3 279 3 551 (7,7) 2,9% 3,5% Other 3 572 2 564 39,3 3,2% 2,5% Revenue 111 947 102 526 9,2 South Africa’s contribution to airtime and subscription revenues remained flat year‐on‐year, despite the 1,1 million reduction in subscribers over the period indicating that the disconnected subscribers were not significant revenue generating customers. Airtime revenue was the major contributor to revenue in the remaining operations which increased in line with overall organic revenue growth. Data and SMS revenue showed a strong increase due to solid mobile data growth in South Africa and to a lesser extent Nigeria and Iran. During the year, investments made in 3G infrastructure, fibre capability and data solutions, which together with improved products (including those in support of our sponsorship of the FIFA World Cup), allowed us to grow this particular revenue stream as part of our data strategy. The contribution of interconnect to total revenue dropped as a result of a 6% fall in Nigerian interconnect revenue, where nearly 80% of all traffic is now on-net. In South Africa, however, interconnect revenue growth was ahead of airtime revenue growth. Revenue generated on cellular phones and accessories dropped due to a considerable reduction in the selling prices, not withstanding an increase in handset volumes from approximately 4,1 million to 5,1 million units. Handsets are mainly purchased for distribution in South Africa. Other revenues of R3,6 billion were generated which mostly related to the acquisition of Verizon SA in February 2009.
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Group finance director's report continued - MTN Group

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