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MTN Group Limited (formerly M-Cell Limited) - Interim results review for the six
month period ended 30 September 2002
MTN Group Limited (formerly M-Cell Limited)
(Incorporated in the Republic of South Africa)
Registration number 1994/009584/06
Share Code: MTN
ISIN Code: ZAE000042164
Commentary
OVERVIEW
MTN Group Limited ("MTN Group" or "the Group") (formerly M-Cell Limited) has
resumed its positive growth trend after a year of muted earnings caused by
initial investment costs arising from its expansion into Africa. The Group now
reports pleasing results for the six-month period ended 30 September 2002.
The Group`s consolidated revenue increased by 68% to R8 683,5 million compared
to the same period last year. Earnings before interest, tax, depreciation and
amortisation ("EBITDA") grew by 79% to R2 687,1 million, while headline earnings
per share ("headline EPS") reached 60,9 cents. A significant contributor to
these increases was the operations of MTN International (Proprietary) Limited
("MTN International"), which houses the Group`s other African operations. MTN
Cameroon Limited ("MTN Cameroon") and MTN Nigeria Communications Limited ("MTN
Nigeria") have both reached profitability after tax and produced better than
anticipated results.
The Group has successfully diversified its income streams. African operations
contributed 34% to Group revenue, 39% to Group EBITDA and 26% to headline EPS.
A total of 5,7 million capable subscribers was recorded in MTN Group`s managed
operations, an increase of 19% since March 2002.
The following transaction and change in accounting policy had an impact on the
results:
- The disposal of 30% in MTN Cameroon to Broadband Telecom, a local
shareholder group in compliance with licence obligations.
- A change in accounting policy for connection incentives was implemented to
bring the Group`s treatment of subscriber acquisition costs in line with
international best practice. Connection incentives are no longer capitalised and
amortised over 12 months, but are expensed in the period in which they occur.
Prior period comparatives have been appropriately restated to reflect that
change and to facilitate year-on-year comparison.
REVIEW OF RESULTS
Income statement
Revenue for the Group increased by 68% from R5 170,2 million to R8 683,5 million
compared to the same period in the previous year. MTN International increased
revenue from R449,0 million to R2 968,8 million, contributing 34% to Group
revenue. The more mature wireless South African operations achieved modest
growth in revenue of 21% to R5 646,7 million.
Consolidated Group EBITDA was R2 687,1 million, a 79% increase year on year. The
overall EBITDA margin for the Group increased to 30,9% from 29,1% compared to
the same period in the previous year. The encouraging performance of the
established African operations and the positive EBITDA levels achieved by MTN
Nigeria were contributing factors, offsetting an EBITDA margin decline in South
African operations.
As expected, net finance costs for the Group increased by 78% to R279,7 million
compared to the same period last year. This resulted from increased borrowings
by MTN Cameroon and MTN Nigeria, which had both raised project finance during
previous periods and began to use these facilities to fund their network
expansion in the current period.
After a subdued year in 2002, headline EPS increased by 92% to 60,9 cents. South
African wireless operations contributed 45,6 cents, an 11,8% increase compared
to the same period last year. African operations performed above expectations
contributing 16,0 cents due to the earlier-than-anticipated profitability of MTN
Nigeria. It should be noted though that significant additional capital
expenditure is still required by MTN Nigeria.
Profit after tax, prior to taking into account minority interest, increased to
R795,8 million from R219,3 million for the previous period. Attributable
earnings for the Group increased 213% to R704,8 million.
Balance sheet and funding
The Group`s total assets have increased by 6% to R29 018,5 million since 31
March 2002. Long-term liabilities reduced to R1 821,7 million, while short-term
borrowings, including overdrafts, increased to R4 634,9 million. This shortening
in the debt maturity profile was due to the reclassification of the current
US$450 million syndicated bridge loan facility arranged by Standard Bank London
Limited and Sumitomo Mitsui Banking Corporation, which terminates in July 2003.
Management is currently renegotiating the facility and firm underwriting
commitments have been received for US$250 million. It is expected that the
refinance will be concluded, thus facilitating a realignment of the Group`s debt
profile by the end of March 2003.
Total net debt for the Group has decreased to R3 679,3 million since March 2002,
partly due to the strengthening of the South African rand during the period
under review. As a result, the gearing ratio for the Group, being interest-
bearing net borrowings as a percentage of total equity adjusted for R10,6
billion of goodwill arising predominantly from the acquisition of shares from
Transnet Limited in July 2000, decreased to 54% from 71% at 31 March 2002.
The Group`s net offshore US dollar borrowings in MTN International (Mauritius)
Limited ("MTN Mauritius"), which were raised to finance the initial capital
investments in Nigeria, have increased to US$246 million as a result of
additional capital calls by MTN Nigeria in April of this year. Management
continues to pursue every effort to reduce this exposure in line with the South
African Reserve Bank ("SARB") regulations. After 30 September 2002, the Group
used approximately R170 million to reduce its offshore borrowings in line with
previous SARB approvals. In addition, the Group invested R500 million in an
international sinking fund policy, thus effecting an indirect US dollar hedge.
In this respect, the Group welcomes the recent announcement by the Minister of
Finance of the further liberalisation of exchange control, especially in regard
to funding by South African corporates of investments into Africa. The Group is
currently considering how to use these new regulations to facilitate the funding
of its investments on the continent.
The Group was asked to report on its SARB approved share placements effected
during January 2002 by the Myburgh Commission of Enquiry into the rapid
Depreciation of the Rand during the last Quarter of 2001. The Group was found
not to have contravened SARB regulations.
REVIEW OF OPERATIONS
MTN South Africa
Mobile Telephone Networks (Proprietary) Limited ("MTN") and MTN Service Provider
(Proprietary) Limited ("MTN SP") (formerly M-Tel (Proprietary Limited) (together
"MTN South Africa") continue to face a challenging, competitive and difficult
economic environment.
Revenue increased by 21% to R5 646,7 million, while EBITDA grew by 13% to R1
635,1 million. Trading conditions remained competitive and the EBITDA margin
decreased to 29,0% from 31,0% compared to the same period the previous year as a
result of increased subscriber acquisition costs and higher interconnect costs.
Over the past year, MTN South Africa had embarked on a strategy to balance value
with volume. As a result, Average Revenue per User ("ARPU") per month for the
period has marginally increased to R210 from R208 in March 2002. ARPU for post-
paid increased to R602 while a small decline to R101 occurred in the pre-paid
segment since March 2002. However, overall subscriber growth slowed, showing an
increase of 11% to 4 284 000 since March 2002. The overall base consists of post
paid subscribers of 891 000, an increase of 5% or 39 000, and pre-paid
subscribers of 3 393 000, a 12% increase since March 2002. A higher than
expected level of involuntary churn was experienced during the period under
review.
In recognition of the competitive trading environment and the depth of the
market, the Group refined its focus-on-value approach and launched several new
pre-paid product offerings during the last few months of the period under
review. New package options were introduced into the market offering innovative
tariff structures as well as loyalty/retention benefits. As a result, it is
anticipated that a more desirable balance between pre-paid and post-paid
subscribers as well as a reduction in pre-paid churn will be achieved.
It is pleasing to note that MTN`s share of active subscribers has not been
negatively impacted by the third operator.
In regard to data, MTN was the first South African operator to market in
launching GPRS services, branded as MTNDataLive. During the trial phase,
approximately 30 000 users had tested the GPRS-enabled handsets.
MTN South Africa has also partnered global technology companies Microsoft and
Ericsson in delivering unique offerings to corporate South Africa. MTN Office
Xchange was launched, allowing corporate access via cellphone to all
functionalities of Microsoft Outlook through the customers` own mail servers.
This is in line with providing customers cost-effective and useful applications
and solutions rather than pure technologies. MTN South Africa continues to
expand its partner base from technology providers to solution integrators. These
efforts have longer lead times but are expected to contribute to revenue in the
future. While the impact of these new services is not yet materially reflected
in the revenue numbers - data contributed around 3% or R172 million to the South
African revenue - it is anticipated that revenue from data will increase in the
years to come.
MTN International
MTN International`s operations have performed above expectations. Revenue
increased from R449 million to R2 968,8 million compared to the same period last
year, with EBITDA levels reaching R1 056,2 million. All operations provided a
positive contribution to profit after tax.
MTN Cameroon achieved a turnaround in the period under review. With a new
management team in place, revenue increased to R366,8 million and a 30% EBITDA
margin was achieved. A profit after tax of R21,6 million was recorded before
taking account of minority interests. Subscriber growth continues to be strong,
reaching 316 000 by 30 September 2002, a 41% increase since March 2002. ARPU
levels have stabilised at US$21.
MTN Nigeria enjoyed a successful first year. Total revenue of R2 223,1 million
was recorded with the EBITDA margin reaching 37%. A strong demand for our
services resulted in a profit after tax of R420,7 million. During the period
under review, significant investments were made in the network roll-out. MTN
Nigeria now covers 26 cities and over 60 smaller towns, villages and communities
from a total of over 300 sites. MTN Nigeria is currently in the process of
finalising its project finance facilities of around US$380 million. Given the
better than anticipated performance, the funding plan was reviewed causing a
delay in closing the financing arrangements.
MTN Uganda continues to deliver strong results despite intensifying competition.
Subscriber numbers increased to 298 000, a 34% increase since March 2002, while
ARPU levels declined only slightly to US$34.
MTN Rwandacell and MTN Swaziland both turned in good performances. Subscriber
growth was 30% to 90 000 and 15% to 63 000 subscribers respectively during the
period under review.
Notwithstanding these pleasing results, MTN International`s African operations
face a number of ongoing challenges, which includes managing the regulatory and
political environment, currency volatilities and interconnect issues.
Management, together with its local strategic partners, continues to address
these issues in the respective countries.
Strategic Investments
This division comprises Orbicom (Proprietary) Limited ("Orbicom"), MTN Network
Solutions (Proprietary) Limited ("MTN NS") and Airborn. Orbicom`s core satellite
distribution business remained steady, whilst its Electronic Funds Transfer
("EFT") operation in Ghana started to generate revenue. MTN NS continued to grow
its revenue base, although market conditions in its sector remain extremely
competitive. Overall, the performance of the entities within Strategic
Investments was below expectations.
The South African government issued an Invitation to Apply ("ITA") for a 51%
interest in the Second Network Operator ("SNO") in May this year. The Group has
thoroughly investigated the opportunity and its potential impact on the
telecommunications environment in South Africa. A decision was taken not to
participate in the bid process. A Memorandum of Understanding was concluded with
one of the bidding consortiums, Goldleaf Trading (Proprietary) Limited, to
leverage the Group`s infrastructure and network and to provide know-how on a
commercial basis. The agreement is non-exclusive.
Directorate
The Group also welcomes two non- executive directors, Ms Sindi Mabaso and Mr
Alan van Biljon. Mr van Biljon will also serve as chairman of the Audit
Committee. The board extends its thanks to Dr Chris Jardine who resigned from
the board in October 2002.
PROSPECTS
MTN South Africa faces a more maturing market and an increasingly competitive
trading environment nevertheless, the Group anticipates that the performance of
MTN International`s operations will contribute to ongoing growth. Overall, the
board is confident that the Group will continue to perform soundly against its
set objectives.
The Group will continue to explore further African opportunities in line with
its vision to become the leading provider of communication services on the
continent.
During the period under review, Mr Cyril Ramaphosa succeeded to the post of non-
executive chairman of the board and Mr Phuthuma Nhleko accepted the position of
chief executive officer for the Group.
DIVIDEND
As a result of the ongoing funding requirement for the Group`s expansion into
Africa, the directors believe that it is in the best interest of shareholders to
reinvest retained earnings to restrict borrowing levels. Accordingly, no interim
dividend is proposed. The dividend policy will be reviewed on a regular basis to
ensure optimisation of shareholder value.
CAUTIONARY ANNOUNCEMENTS
The Group issued a cautionary announcement on 31 July in respect of its
potential financial exposure following the liquidation of the CNA Group. Based
on further legal review of the position, it is now considered unlikely that the
MTN Group will have any additional exposure other than already anticipated. This
cautionary announcement is accordingly withdrawn.
The Group also issued a cautionary announcement on 22 November 2002 in respect
of preliminary discussions in relation to a potential transaction involving its
non-South African assets. No further developments have occurred since the
release. Shareholders are still advised to exercise caution when dealing in MTN
Group shares until a further announcement is made.
For and on behalf of the board
M C Ramaphosa P F Nhleko
(Non-executive Chairman) (Chief Executive Officer)
26 November 2002
Sandton
Consolidated income statement
6 months 6 months* Year*
ended ended ended
30 Sept 30 Sept 31 March
2002 2001 2002
Reviewed Reviewed % Audited
Rm Rm change Rm
Revenue 8 683,5 5 170,2 68,0 12 432,0
Cost of sales (3 594,5) (2 066,3) (5 081,1)
Gross profit 5 089,0 3 103,9 64,0 7 350,9
Operating
expenses
- net of (2 401,9) (1 599,3) (3 724,7)
sundry income
Earnings
before
interest,
taxation,
depreciation
and
amortisation
(EBITDA) 2 687,1 1 504,6 78,6 3 626,2
Depreciation (766,8) (455,3) (1 081,6)
Amortisation (138,3) (50,5) (175,1)
Profit from
operations
before
goodwill
amortisation 1 782,0 998,8 78,4 2 369,5
Goodwill (297,5) (291,8) (592,0)
amortisation
Profit from 1 484,5 707,0 110,0 1 777,5
operations
Finance income 72,6 65,1 130,5
Finance costs (352,3) (222,0) (447,4)
Share of
profits
(losses)
of associates 0,8 (2,1) (4,8)
Profit before 1 205,6 548,0 120,0 1 455,8
taxation
Taxation (409,8) (328,7) (908,4)
Profit after 795,8 219,3 262,9 547,4
taxation (PAT)
Minority (91,0) 6,0 44,5
interest
Attributable 704,8 225,3 212,8 591,9
earnings
Contribution
to
attributable
earnings
Wireless 1 013,5 517,7 95,8 1 196,0
telecommunicat
ions (MTN)
- South Africa 750,1 663,3 13,1 1 454,3
- Rest of 263,4 (145,6) (258,3)
Africa
Satellite
communications
(Orbicom) (11,2) (0,6) (12,1)
Gain on
disposal of
80%
shareholding (90,5) - -
in MTN
Cameroon
Provision
against loan
arising on
disposal of
MTN Cameroon
to
reflect net 90,5 - -
asset value
Basic headline 1 002,3 517,1 93,8 1 183,9
earnings
Goodwill (297,5) (291,8) (592,0)
amortisation
Attributable 704,8 225,3 212,8 591,9
earnings
Basic headline
earnings
per ordinary
share (cents)
Wireless 61,6 31,8 93,7 73,2
telecommunicat
ions (MTN)
- South Africa 45,6 40,8 11,8 89,0
- Rest of 16,0 (9,0) (15,8)
Africa
Satellite
telecommunicat
ions
(Orbicom) (0,7) (0,0) (0,7)
Basic headline
earnings per
share (cents) 60,9 31,8 91,5 72,5
Effect of (18,1) (17,9) (36,3)
goodwill
amortisation
Attributable
earnings
per share 42,8 13,9 207,9 36,2
(cents)
Number of
ordinary
shares in
issue:
- Weighted 1 646 566 1 626 067 1 632 853
average (000)
- At period 1 651 292 1 638 007 1 640 437
end (000)
* Restated for change in accounting policy for connection incentives (note
10)
Summarised consolidated balance sheet
6 months 6 months* Year*
ended ended ended
30 Sept 30 Sept 31 March
2002 2001 2002
Reviewed Reviewed Audited
Rm Rm Rm
ASSETS
Non-current assets 23 358,6 20 751,8 23 242,4
Property, plant and 9 044,5 6 296,9 8 321,6
equipment
Goodwill 10 598,9 11 061,7 10 802,6
Intangible assets 3 193,3 3 017,6 3 684,8
Investments and loans 449,2 326,6 347,5
Deferred taxation 28,9 49,0 42,1
Non-current prepaid 43,8 - 43,8
tax
Current assets 5 659,9 2 959,2 4 170,1
Bank balances,
deposits, cash and
amounts receivable on 1 529,0 647,1 1 214,2
demand
Securitised cash 1 248,3 9,6 354,1
deposits **
Other current assets 2 882,6 2 302,5 2 601,8
Total assets 29 018,5 23 711,0 27 412,5
EQUITY AND
LIABILITIES
Capital and reserves
Ordinary 16 457,5 15 226,0 15 915,8
shareholders`
interest
Minority interests 941,1 595,5 820,6
Non-current 2 777,6 4 660,4 6 201,7
liabilities
Long-term liabilities 1 821,7 3 886,2 5 297,8
Deferred taxation 955,9 774,2 903,9
Current liabilities 8 842,3 3 229,1 4 474,4
Non-interest bearing 4 207,4 2 405,9 3 996,7
liabilities
Interest bearing 4 634,9 823,2 477,7
liabilities
Total equity and 29 018,5 23 711,0 27 412,5
liabilities
Net asset value per
ordinary share (rand)
- Book value 9,97 9,30 9,70
Net debt/equity 0,21 0,26 0,25
Net debt/equity 0,54 0,85 0,71
(excluding goodwill)
* Restated for change in accounting policy for connection incentives and
reclassification of letters of credit in MTN Nigeria from other current assets
** These monies are placed on deposit with banks in Nigeria to secure letters
of credit
Summarised consolidated cash flow statement
6 months 6 months* Year*
ended ended ended
30 Sept 30 Sept 31 March
2002 2001 2002
Reviewed Reviewed Audited
Rm Rm Rm
Cash inflows from 2 186,2 530,9 2 755,3
operating activities
Cash outflows from (1 858,7) (1 226,7) (3 501,9)
investing activities
Cash inflows from 974,1 394,9 702,4
financing activities
Net increase
(decrease) in cash
and
cash equivalents 1 301,6 (300,9) (44,2)
Cash and cash 1 230,4 803,7 803,7
equivalents at
beginning of period
Reclassification from - 24,9 354,1
other current assets
Foreign entities (11,2) (28,5) 116,8
translation
adjustment
Cash and cash 2 520,8 499,2 1 230,4
equivalents at end of
period
* Restated for change in accounting policy for connection incentives (note
10)
Summarised group statement of changes in shareholders` equity
6 months 6 months Year
ended ended ended
30 Sept 30 Sept 31 March
2002 2001 2002
Reviewed Reviewed Audited
Rm Rm Rm
Opening balance at 1 15 949,1 14 766,9 14 766,9
April
Change in accounting (33,3) (52,6) (52,6)
policy
Restated opening 15 915,8 14 714,3 14 714,3
balance at 1 April
Net profit 704,8 225,3 591,9
attributable to
ordinary shareholders
Dividends - (0,5) (0,4)
Share capital issued
at a premium
less share issue 138,2 314,8 348,9
expenses
Share election - (113,5) (113,5)
reserve
Exchange differences
arising on
translation of (301,3) 85,6 374,6
foreign entities
16 457,5 15 226,0 15 915,8
Segment analysis
6 months 6 months* Year*
ended ended ended
30 Sept 30 Sept 31 March
2002 2001 2002
Reviewed Reviewed Audited
Rm Rm Rm
REVENUE
Wireless 8 615,5 5 121,3 12 331,0
telecommunications
(MTN)
- South Africa 5 646,7 4 672,3 9 981,7
- Rest of Africa 2 968,8 449,0 2 349,3
Satellite 68,0 48,9 101,0
communications
(Orbicom)
8 683,5 5 170,2 12 432,0
EBITDA
Wireless 2 691,3 1 499,8 3 630,0
telecommunications
(MTN)
- South Africa 1 635,1 1 447,2 3 190,6
- Rest of Africa 1 056,2 52,6 439,4
Satellite (4,2) 4,8 (3,8)
communications
(Orbicom)
2 687,1 1 504,6 3 626,2
PAT
Wireless 1 102,9 511,5 1 148,4
telecommunications
(MTN)
- South Africa 749,1 662,6 1 451,9
- Rest of Africa 353,8 (151,1) (303,5)
Satellite (11,2) (0,6) (12,1)
communications
(Orbicom)
Corporate head office (295,9) (291,6) (588,9)
(goodwill)
795,8 219,3 547,4
* Restated for change in accounting policy for connection incentives (note
10)
Notes
1. Basis of accounting
These consolidated condensed interim financial statements are prepared in
accordance with South African Statements of Generally Accepted Accounting
Practice (GAAP) and Schedule 4 of the South African Companies Act (Act No 61 of
1973) as amended. The accounting policies are consistent with those used in the
annual financial statements for the year ended 31 March 2002, except for the
change in accounting policy relating to the capitalisation and amortisation of
connection incentives, which are now recognised as costs in the period incurred.
2. Comparatives
Where necessary, comparative figures have been adjusted to conform with
changes in presentation in the current period.
3. Earnings per ordinary share
The calculation of basic headline earnings per ordinary share is based on
attributable earnings before goodwill amortisation of R1 002,3 million (2001:
R517,1million) and a weighted average of 1 646 566 391 (2001: 1 626 067 069)
ordinary shares in issue.
No fully diluted earnings per ordinary share, in respect of debentures and
options convertible into ordinary shares, have been disclosed as the potential
dilution is not considered to be material.
4. Independent review by the auditors
These interim results have been reviewed by our joint auditors
PricewaterhouseCoopers Inc. and Nkonki Sizwe Ntsaluba Inc., who have performed
their review in accordance with the guideline "Guidance for Auditors on Review
of Interim Financial Information" issued by the South African Institute of
Chartered Accountants.
The scope of the review was to enable the joint auditors to report that
nothing came to their attention that caused them to believe that the interim
financial information needs modification, so as to fairly present, in accordance
with South African Statements of Generally Accepted Accounting Practice, in all
material respects, the financial position of the Group at 30 September 2002, and
the results of its operations, cash flows and changes in equity for the period
then ended.
It should be recognised that their review did not constitute an audit where
a high level of assurance is expressed on the fair presentation of the interim
financial information. Accordingly, PricewaterhouseCoopers Inc. and Nkonki Sizwe
Ntsaluba Inc. expressed only a moderate level of assurance on the fair
presentation of the interim financial information.
A copy of their unqualified review report is available for inspection at
the registered office of the company.
5. Listing requirements
This interim report has been prepared in compliance with the Listings
Requirements of the JSE Securities Exchange South Africa.
6 months 6 months Year
ended ended ended
30 Sept 30 Sept 31 March
2002 2001 2002
Reviewed Reviewed Audited
Rm Rm Rm
6. Interest bearing
liabilities
Call borrowings 256,5 157,5 337,9
Short-term borrowings 4 378,4 665,7 139,8
Current liabilities 4 634,9 823,2 477,7
Long-term liabilities 1 821,7 3 886,2 5 297,8
6 456,6 4 709,4 5 775,5
7. Capital expenditure 1 833,6 1 239,1 3 355,7
incurred
8. Contingent liabilities
and commitments
Local currency 94,8 61,1 181,6
guarantees (ZAR
equivalent)
Operating leases 782,0 1 262,1 954,7
Commitments for capital
expenditure
- Contracted for 1 790,6 481,6 876,0
- Authorised but not 2 614,4 2 263,6 5 790,7
contracted for
9. Cash and cash
equivalents
Bank balances, deposits 1 529,0 647,1 1 214,2
and cash
Securitised cash 1 248,3 9,6 354,1
deposits
Call borrowings (256,5) (157,5) (337,9)
2 520,8 499,2 1 230,4
10. Change in accounting policy
During the interim period ended 30 September 2002, the Group changed its
accounting policy with respect to the treatment of capitalisation and
amortisation of connection incentives. In order to align with international
industry practice, the Group now recognises connection incentives as costs in
the period incurred rather than capitalising connection incentives and
amortising the cost over 12 months. The comparative amounts have been
appropriately restated. The effects of the change are as follows:
6 months 6 months Year
ended ended ended
30 Sept 30 Sept 31 March
2002 2001 2002
Reviewed Reviewed Audited
Rm Rm Rm
(Decrease) increase in (17,2) (12,4) 19,3
profit after tax
(Decrease) increase in (24,6) (17,8) 27,5
profit before tax
Taxation 7,4 5,4 (8,2)
(Decrease) increase in (33,3) (52,6) (52,6)
opening accumulated
profits
Gross (47,6) (75,1) (75,1)
Taxation 14,3 22,5 22,5
The change in accounting policy has no effect on the minority interests.
11. Changes in shareholding of subsidiaries
Disposal of 30% shareholding in MTN Cameroon
In April 2002, MTN Mauritius sold 30% of its holding in MTN Cameroon, on
loan account, to Broadband Telecom Limited, a company incorporated in Cameroon
in compliance with licence obligations.
The Group`s financial position has not been significantly affected by this
transaction.
The results of MTN Cameroon are consolidated into the Group financial
statements. However, in terms of certain conditions of the disposal agreement,
80% of MTN Cameroon`s economic risk still vests with the Group and therefore the
consolidated financial statements include 80% of the results of MTN Cameroon.
Increase in shareholding in MTN Nigeria
During the period the Group increased its shareholding in MTN Nigeria from
77,5% to 79,5% as a result of further capital provided to MTN Nigeria.
Registration number: 1994/009584/06 (Incorporated in the Republic of South
Africa) Share code: MTN ISIN code: ZAE000042164 American Depository Receipt
(ADR) Programme: Cusip No 5527IU109 ADR to ordinary share 1:1 Depository: The
Bank of New York, 101 Barclay Street, New York NY 10286 USA Registered office:
3 Alice Lane * Sandown Extension 38 * 2196
Non-executive directors: M C Ramaphosa (Chairman) * D D B Band * Z N A Cindi * P
L Heinamann * S N Mabaso * A van Biljon * L C Webb (alternate) * J R D Modise
(alternate) Executive directors: P F Nhleko (CEO) * I Charnley * R S Dabengwa *
R D Nisbet * P L Zim Company secretary: M M R Mackintosh * 3 Alice Lane *
Sandown Extension 38 * 2196 * Private Bag 9955 * Sandton * 2146
Transfer secretaries: Computershare Investor Services Limited * 70 Marshall
Street * Johannesburg * 2001 * PO Box 1053 * Johannesburg 2000 Joint auditors:
Nkonki Sizwe Ntsaluba Inc. * 1 Woodmead Drive * Sandton * 2196 * PO Box 2939 *
Saxonwold * 2132 and PricewaterhouseCoopers Inc. * 2 Eglin Road * Sunninghill
2157 * Private Bag X36 * Sunninghill * 2157
E-mail: investor_relations@mtn.co.za These results can be viewed on the
Group`s website at http://www.mtngroup.com
Date: 26/11/2002 05:15:01 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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