Revenue was up 0.1 % at ZAR147.
Advertisement
MTN also said it has set aside 9.3 billion rand ($600 million) to cover a potential settlement of a fine imposed by Nigerian authorities a year ago for failing to cut of unregistered SIM card users.
MTN Nigeria recorded a R9,287-billion provision for the fine at the end of the reporting period, negatively impacting reported EBITDA by 13,6% and HEPS by 402 cents.
Separately Africa Internet Group (AIG), a Nigerian e-commerce group best known for online retailer Jumia, said on Thursday it had secured further funding worth a total of 225 million euros ($245 million) from a group of investors including MTN, already one of the firm’s biggest shareholders. The group said the positive trend evident in its South African operations during the second half of its 2015 financial year was likely to continue.
During the year, MTN had to disconnect 10 million subscribers – 6.7 million of them in Nigeria and 3.7 million in Uganda.
Advertisement
“While the group operates across 22 countries, the earnings remain highly concentrated in a few markets, with the associated volatility and risks as evident over the past few years”. However, the increased expansion of the network resulted in higher rent and utilities and transmission costs. Subscriber growth was achieved through attractive segmented below-the-line campaigns and an increased focus on the customer experience enabling the Group to maintain its leadership position in 15 markets. Higher lease costs associated with the sale of towers in Nigeria and commissions associated with new revenue streams also impacted the margin. South Africa’s capex amounted to R10 948 million, representing 37,5% of total capex. In the year, the operation added 966 2G, 1,593 co-located 3G and 3,148 co-located LTE sites, expanding 3G and LTE coverage and ensuring improved quality and capacity.
