SOUTH AFRICA: South Africa's MTN mobile phone company raises subsriber base 73 percent, targets Iran

MTN, Africa's second-largest mobile phone operator, reports an increase of 73 percent in its subscriber base, narrowing the gap with the continent's number one operator Orascom. MTN says it aims to increase its Iran operation five-fold. The African continent's largest mobile phone operator, MTN, has reported an almost 50 percent jump in revenues and an increase of 73 percent in subscribers. The group, which is also second-biggest in South Africa, with Vodacom the biggest, has focused heavily on Africa and other emerging markets including the Middle East. The company grew its subscriber base to almost 40 million in 2006, narrowing the gap between it and the continent's largest mobile phone operator, Egypt''s Orascom. Orascom, present in North and sub-Saharan Africa, Pakistan and Bangladesh, has over 50 million subscribers and says it hopes to double its subscriber base in 2007. Orascom increased its subscriber base by 67 percent in 2006. MTN's revenue rose 49 percent to 52 billion rand (7.14 billion US dollars) in the year to Dec. 31, 2006, according to company results released on Thursday (March 29). Chief Executive Phuthuma Nhleko also told a results briefing he predicted a 41 percent jump in subscribers by end-2007, buoyed by plans to lift Iranian subscribers to its MTN Irancell unit by five-fold by end-2007. Nhleko said he saw more potential in the company's Africa operations but the group also said Iran could grow to compete with its Nigerian operations in terms of profitability. MTN's adjusted headline EPS of 584.7 cents was in line with its own forecast of between 567 and 597 cents and showed a rising trend from the first half, when it managed 278.5 cents. The profits were not directly comparable to a year ago, as MTN has changed its year-end to December to be in line with its peers. "The revenue increase was driven mainly by the acquisition of Investcom and increased subscriber numbers," MTN said. MTN bought Investcom LLC for 5.5 billion US dollars in May last year. Investcom, listed on the Dubai and London bourses, gave it access to 10 new markets in Africa and the Middle East. In Iran, MTN said it had added 154,000 new postpaid subscribers at an ARPU of 9 US dollars in the two months between launch and year-end, disappointing analysts. By March 25, the Iranian unit had more than a million subscribers, disappointing analysts who had hoped for higher figures. MTN is banking on fat returns in Iran, which is awash with oil dollars, but the launch of its network there was delayed by several months until last October, and investors are worried about rising tensions over the country's nuclear plans. Nhleko said the company was watching developments in Iran but in an interview with Reuters said he remained optimistic about its operations in the country. MTN said it had maintained its South Africa market share at 36 percent. MTN competes at home with Vodacom, jointly owned by Telkom and Vodafone, and in Africa with Celtel, owned by Kuwait's MTC. In Nigeria, MTN said its subscribers rose by 47 percent to more than 3 million, while market share was at 46 percent.

ITN Source | April 2, 2007

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