UPDATE 3-S.Africa's MTN H1 profit up 26 pct, eyes expansion
(Adds CEO quotes, analysts, shares)
JOHANNESBURG, Aug 28 (Reuters) - Sub-Saharan Africa's biggest mobile phone operator MTN (MTNJ.J) posted a 26 percent rise in first-half adjusted headline earnings per share on Thursday and said it was not "urgently" seeking a merger deal.
The South African company said on Thursday adjusted headline EPS rose to 408.5 cents, in line with the company's forecast for an increase of 23.3-28.3 percent, and said subscriber numbers jumped 53 percent to 74.1 million.
Merger talks between MTN and both India's Bharti Airtel (BRTI.BO) and Reliance Communications (RLCM.BO) collapsed earlier this year, and MTN shares have lost 14 percent since.
Some analysts say MTN could still buy an emerging markets player or fall prey to a foreign buyer, but while the company said it was actively seeking expansion opportunities, its chief executive stressed it was in no hurry for a merger.
"There is nothing pushing us to do a deal urgently," MTN CEO Phuthuma Nhleko told a results presentation, adding MTN would remain a "beacon" as the industry consolidated.
He said MTN had not looked at expanding into South America, which analysts have speculated could be a target market for the company, but did not rule out investing there.
The stock, which took a beating when the company issued its trading statement last week, rose as much as 2 percent as investors welcomed the subscriber figures.
"I think the numbers testify MTN is in expansion mode, and its strategy to move into risky markets is paying off," said Dobek Pater, telecoms analyst at Africa Analysis.
MTN, which operates in more than 20 countries in Africa and the Middle East, said prospects for the second half remained "positive" despite competitive markets.
IRAN
MTN is trying to diversify its earnings beyond its key markets of Nigeria and South Africa and has been banking on a new venture in Iran, which some investors deem risky, given the country's nuclear stand-off with the West. It said Irancell boosted its subscriber base by 93 percent to 11.6 million.
"I still believe there is a big opportunity in Iran," Nhleko said, adding that its growth in Iran had been slowed by difficulty in finding base station sites.
Almost 700 BTS sites were rolled out in Iran in the first half and the company is eyeing further growth in the youth market through mobile data services. Continued...
