MTN Subscribers Soar to 61,4m as Group Continues to Deliver Solid Performance

Highlights of Results for the 12-Month Period Ended 31 December 2007

JOHANNESBURG, South Africa, March 20 /PRNewswire-FirstCall/ --
- Group subscribers up 53% to 61,4 million
- Revenue increased 42% to R73,1 billion
- EBITDA up 42% to R31,8 billion
- Net debt to EBITDA of 0,5%
- Adjusted headline EPS of 681,9 cents
- Dividend per share of 136 cents
The MTN Group is pleased to announce that it has recorded 61,4 million
subscribers across its 21 operations as at 31 December 2007. This is an
increase of 53% from 40,1 million subscribers as at 31 December 2006. In
addition, the MTN Group has declared a dividend of 136 cents per share, its
highest dividend ever.
The former Investcom operations recorded subscriber growth of 66% to 13,9
million, contributing 23% of the Group's total subscriber base. In the South
and East Africa (SEA) region subscribers increased by 23% to 19,3 million. In
the West and Central Africa (WECA) region subscribers rose by 43% to 28
million and the Middle East and North Africa (MENA) region recorded a
phenomenal 186% increase to 14 million, driven by the very strong growth of
MTN Irancell.
Overview of Results
The MTN Group's revenue increased by 42% to R73,1 billion from R51,6
billion recorded at 31 December 2006. Revenue was driven mainly by
significant subscriber growth.
The Group's earnings before tax, interest, depreciation and amortisation
(EBITDA) increased by 42% to R 31,8 billion compared to 31 December 2006.
This is due to strong revenue growth and initiatives to improve operational
efficiencies. The SEA and WECA regions contributed 36% and 52% to Group
EBITDA respectively.
Adjusted Headline earnings per share (EPS) of 681,9 cents for the period
under review compares favourably with adjusted headline EPS of 584,7 cents
for the 12 months ended 31 December 2006.
The average revenue per user (ARPU) marginally declined in most
operations, which is consistent with the increased penetration into lower
usage segments.
The Group's taxation charge increased by R5,2 billion to R7,79 billion
compared with the 12 months ended 31 December 2006. This relates mostly to
the end of the pioneer tax holiday in Nigeria in March 2007.
During 2007, the MTN Group facilitated the increase in equity
participation of local shareholders in Uganda to 5%. MTN also decreased its
shareholding in Cote d'Ivoire to 60% during the year. The Group is also keen
to ensure that, where possible, it holds a controlling interest in all its
operations. In light of this, in 2007 the MTN Group increased its
shareholding in MTN Rwanda from 40% to 55% and Mascom Botswana from 51% to
53%. The increased shareholding in Botswana did not result in a change in
control.
Says MTN Group President and CEO, Mr Phuthuma Nhleko: "I am pleased with
yet another satisfactory year across all MTN Group operations. Most of our
operations have significantly grown the subscriber base and revenues. This
performance reflects the significant opportunities for growth in the Group's
expanded footprint.
"Going forward, we will continue to actively seek value enhancing
expansion opportunities in emerging markets, invest heavily in infrastructure
and ensure that the Group is well positioned to benefit from the rapidly
converging technology market. We will also continue to drive efficiencies and
engage with regulatory authorities in the various markets in which we
operate."
Operational Review
MTN South Africa performed well in a very competitive market increasing
its total subscriber base by 17% on 31 December 2006 to 14,8 million at 31
December 2007. The postpaid subscriber base grew by 9% to 2,5 million
subscribers and the prepaid base increased by a healthy 19% to 12,3 million
over the 12-month period. Low denomination vouchers have been a key driver in
stimulating usage. Market share was maintained at 36% at 31 December 2007.
Network enhancement during the review period included the commissioning
of 371 2G base transceiver stations (BTSs) and 590 3G BTSs. At year-end, the
total number of 3G sites was 1 379 and 904 000 3G handsets and data cards
were in use. Going forward, MTN South Africa is laying its own fibre cable to
improve the capacity and quality of mobile transmission and to effectively
manage margins.
The MTN data proposition is gaining momentum with a 42% increase in data
revenue to R2,8 billion. This is due to competitive pricing, increased 3G
roll out and improved stock management in the channels.
MTN Nigeria increased its subscriber base by 34% to 16,5 million at 31
December 2007. Network capacity and quality were addressed through a ramp-up
in infrastructure roll out in the second half of 2007.
Although it remained stronger than expected, ARPU declined from US$18 at
31 December 2006 to US$17 at 31 December 2007, which is consistent with
increased penetration into the lower segment of the market.
MTN Nigeria maintained its leading market position with market share at
44% due to competitive pricing, strong brand preference and an effective
value proposition. During the period, a number of products and innovations
were launched, such as GPRS roaming, Edge, Blackberry(c) services, Vitrain
top-up and Wimax.
At 31 December 2007, 785 additional sites had been added, bringing the
total number of live sites to 3 422 and approximately 77 sites have now been
integrated with 3G technology. The fibre optic cabling in Lagos Metro (82km)
and Niger Delta (342km) was completed in the second half of 2007.
MTN Nigeria was awarded a 15-year 2 GHz spectrum licence on 1 May 2007
for US$150 million for the delivery of 3G services. The operation was also
awarded a 7,5 MHz frequency spectrum band licence on 23 March 2007 for N288
000, renewable annually.
The period under review is MTN Irancell's first full 12 months of
operation. During the period, the operation recorded an exceptional
performance, increasing subscribers from 154 000 to six million. This equates
to an average net acquisition rate of 488 000 subscribers a month. Prepaid
subscribers comprise 94% of the subscriber base.
ARPU increased from US$9 at 31 December 2006 to US$10 at 31 December
2007. This was a result of usage-stimulating packages and improvements in the
quality and capacity of the network. MTN Irancell was first-to-market in
providing GPRS, which has enabled email solutions, MMS, Data SIMS and Vitrain
content portal.
Following a slow network roll out in 2006, the network has been
significantly enhanced and had sufficient capacity to service 6,5 million
subscribers at 31 December 2007. There are 2 023 live sites across the 30
provincial capitals in 291 cities. Geographic coverage is 50%, population
coverage is 50% and there is 1 500km of road coverage.
MTN Ghana recorded an exceptional increase in subscriber numbers for the
period from 2,6 million in December 2006 to four million. This was
underpinned by improvements in network coverage and quality and an enhanced
competitive proposition. ARPU decreased from US$17 at 31 December 2006 to
US$14 at 31 December 2007 due to increased penetration and reduced tariffs.
Network enhancement continued during the review period with the
installation of 718 new BTSs, bringing the total to 1 660. At 31 December
2007, geographical coverage was 28% and population coverage was 72%.
MTN Sudan increased its subscriber base by 96% to 2,1 million at 31
December 2007. MTN Sudan increased its market share from 25% to 28% at 31
December 2007 in a highly competitive market.
Subscriber acquisitions in the first quarter of 2007 were slightly
hindered due to technical challenges experienced during the migration to the
new billing system.
ARPU decreased from US$16 at 31 December 2006 to US$12 at 31 December
2007 due to high connections in the lower usage market and the prevalence of
dual sim cards. MTN Sudan has introduced a segmented pricing offering which
will stimulate usage and support ARPU.
During the period, the operation rolled out an additional 575 BTS sites.
Population coverage is 43% and geographical coverage is 3%.
MTN Syria delivered stable performance in this high-growth market,
recording a 39% increase in subscriber numbers to 3,1 million at 31 December
2007. Blended ARPUs declined from US$22 at 31 December 2006 to US$20 at 31
December 2007. Prepaid ARPUs are US$15 and postpaid ARPUs are US$42. This was
due to an increase in mobile penetration from 26% to 35%.
MTN Syria continued to focus on improving the coverage in the major
cities and providing coverage in the rural and coastal areas. Three hundred
and thirty seven BTSs were rolled out in the 12 months to 31 December 2007.
Population coverage and geographical coverage stood at around 98% and 78%
respectively.
"The Group's prospects for 2008 remain positive in our key markets.
During this year, we expect to grow our subscriber base by around 22 million
new subscribers," concludes Nhleko. (i) Blended ARPU

31 Dec 2006 31 Dec 2007 31 Dec 06 31 Dec 07
ARPU ARPU
MTN Group Subscribers (000) (000) (ZAR/USD) (ZAR/USD)
South and East Africa
South Africa 12 483 14 781 (i)R159 (i)R149
Swaziland 268 380 US$20 US$18
Botswana 600 874 US$19 US$15
Zambia 187 262 US$19 US$10
Uganda 1 595 2 799 US$12 US$10
Rwanda 384 652 US$17 US$12
Sub total 15 517 19 329
West and Central Africa
Nigeria 12 281 16 511 US$18 US$17
Ghana 2 585 4 016 US$17 US$14
Cameroon 1 783 2 559 US$15 US$14
Cote d'Ivoire 1 625 2 679 US$18 US$13
Congo Brazzaville 280 316 US$20 US$20
Liberia 218 304 US$18 US$19
Benin 476 652 US$21 US$12
Guinea Conakry 276 727 US$17 US$15

Guinea Bissau 98 235 US$12 US$17
Sub total 19 622 27 999
Middle East and North Africa
Sudan 1 066 2 090 US$16 US$12
Iran 154 6 006 US$9 US$10
Afghanistan 218 1 200 US$14 US$11
Syria 2 237 3 109 US$17 US$20
Yemen 1 161 1 507 US$10 US$9
Cyprus 76 113 US$35 US$39
Sub total 4 912 14 025
TOTAL 40 051 61 354

Issued by MTN Group Corporate Affairs
About the MTN Group
Launched in 1994, the MTN Group is a multinational telecommunications
group, operating in 21 countries in Africa, Asia and the Middle East. The MTN
Group is listed on the JSE Securities Exchange in South Africa under the
share code: "MTN". As at 31 December 2007, MTN recorded 61,4 million
subscribers across its operations in Afghanistan, Benin, Botswana, Cameroon,
Cote d'Ivoire, Cyprus, Ghana, Guinea Bissau, Guinea Republic, Iran, Liberia,
Nigeria, Republic of Congo (CongoBrazzaville), Rwanda, South Africa, Sudan,
Swaziland, Syria, Uganda, Yemen and Zambia. The MTN Group is a global sponsor
of the 2010 FIFA World Cup South Africa(TM) and has exclusive mobile content
rights for Africa and the Middle East. Visit http://www.mtn.com.
SOURCE MTN Group Ltd

For more information contact: Pearl Majola at +2783-212-2459 or
Majola_p@mtn.co.za; Lwazi Stuurman at +2783-212-1057 or stuurm_l@mtn.co.za