Wrap Text
Reviewed Condensed Consolidated Interim Financial Results for the Six Months ended 30 June 2015
MTN Group Limited
(Incorporated in the Republic of South Africa)
Registration number 1994/009584/06
Share code: MTN
ISIN: ZAE000042164
("the MTN Group", "MTN" or "the Group")
Reviewed condensed consolidated interim financial results
for the six months ended 30 June 2015
MTN is a leading emerging markets mobile operator, connecting over 230 million people in
22 countries across Africa and the Middle East. We are committed to continuously improving our
customers' experience and delivering a bold, new Digital World to them.
Financial results snapshot
- Group subscribers increased 3,4% to 231,0 million
- Revenue decreased 4,9% (increased 0,7%*)to R69 210 million
- Data revenue increased 21,3% to R15 412 million
- Voice traffic and data traffic increased 11,2% and 87,0% respectively
- EBITDA decreased 10,1% (decreased 4,2%*) to R30 274 million
- EBITDA margin decreased 2,6 percentage points to 43,7%
- HEPS decreased 10,3%** to 654 cents**
- Interim dividend of 480 cents per share
- Capex increased 18,0% to R10 852 million
Note: Certain financial information presented in these results constitutes pro forma financial information. The pro forma financial
information is the responsibility of the Group's board of directors and is presented for illustrative purposes only. Because of its nature, the
pro forma financial information may not fairly present MTN's financial position, changes in equity, results of operations or cash flows.
The financial information presented in these results has been prepared excluding the impact of hyperinflation, tower profits and related
movements and constitutes pro forma financial information to the extent that it is not extracted from the segment disclosure included in
the reviewed condensed consolidated financial results for the six months ended 30 June 2015. This pro forma financial information has
been presented to eliminate the impact of hyperinflation and tower profits and related movements from the financial results in order to
achieve a comparable analysis year on year. Hyperinflation adjustments and tower profits and related movements have been calculated in
terms of the Group accounting policies disclosed in the previous consolidated annual financial statements for the year ended 31 December
2014. The pro forma financial information including constant currency information incorparated in these condensed consolidated
interim financial results have not been audited or reviewed by our external auditors.
1. Constant currency ("organic") information has been presented to illustrate the impact of changes in currency rates on the Group's
results. In determining the change in constant currency terms, the current financial reporting period's results have been adjusted to
the prior period's average exchange rates determined as the average of the monthly exchange rates which can be found on
www.mtn.com/investors. The measurement has been performed for each of the Group's currencies, materially being that of the US
dollar and Nigerian naira. The organic growth percentage has been calculated by utilising the constant currency results compared to
the prior period results. In addition, in respect of MTN Irancell, MTN Sudan and MTN Syria, the constant currency information has
been prepared excluding the impact of hyperinflation.
* Constant currency ("organic") information.
** Reported - includes hyperinflation and/or tower profits and related movements
OVERVIEW
MTN Group's results for the six months are reflective of a challenging operating environment and
lower than expected performance in parts of the business. A difficult regulatory environment and
weak macro-economic conditions continue to impact the Group's performance. Reported financial
results were further impacted by unfavourable exchange rate movements.
Notwithstanding the challenging environment, MTN remains well positioned in a rapidly evolving
market, growing its subscriber base by 3,4% to 231,0 million. Despite a 62,5% decline in US dollar
data tariffs year-on-year (YoY), the Group continued to benefit from increased demand for data
services, increasing data revenue by 21,3%. This was attributable to an 87,0% YoY increase in data
traffic as well as encouraging growth in digital and mobile financial services.
Lower voice tariffs (average price per a minute (APPM) declined 25,3% in US dollar terms), drove a
11,2% increase in billable minutes. The lower tariffs together with lower termination rates and
pressure on consumer spending negatively impacted voice revenue growth resulting in a 4,9%
decline in total revenue for the period.
MTN South Africa's performance was hampered by handset supply chain challenges and industrial
strike action during the period. Despite this, the operation continued to show encouraging growth
in service revenue, driven mainly by data revenue. MTN Nigeria experienced a difficult six months
impacted largely by unfavourable macro-economic conditions and operational execution challenges
resulting in declining revenue and higher costs. MTN Irancell delivered a strong performance
supported by data growth.
The Group earnings before interest, tax, depreciation and amortisation (EBITDA) margin declined by
2,6 percentage points (pp) to 43,7% mainly as a result of lower revenue and weaker local currencies
impacting costs. The sale and lease back of towers, which were largely earnings neutral due to lower
depreciation costs, were a drag on the EBITDA margin. However, good progress in transforming our
operating model, maintaining cost growth below inflation and optimising resources, partly offset the
decline in margin.
Capital expenditure (capex) was R10 852 million, 18,0% higher than the previous period.
MTN continued to focus on improving network quality, increasing capacity and expanding the
footprint of our 3G, LTE and fibre networks. During the period, the Group's operations rolled out 1
335 2G, 5 048 largely co-located 3G and 2 475 LTE sites as well as 722km of long distance fibre.
Cash inflows generated by operations decreased by 12,6%** to R26 289 million**.
PROSPECTS
As we move into the second half of the year there will be an increased focus on building staff
engagement and improving customer service in the South African operation. The operation will also
accelerate its capex plans to support medium term growth prospects, particularly in the data area.
Corrective measures have been implemented to improve handset sales.
We expect the balance of the year to remain challenging for MTN Nigeria. Notwithstanding tough
operating conditions, there will be a strong focus on active subscriber management and providing
more competitive voice and data offerings to high value customers. We expect the large and small
opco clusters to maintain the growth trajectory of the past six months.
We will continue to increase data revenue by encouraging uptake through increased smartphone
penetration and new pricing strategies. We will also continue to create a distinct customer
experience through investing in our networks to support data growth and improving value and
segmentation offers.
The continued rollout of MTN Mobile Money and broader financial services remains a priority as well
as developing our digital offering with our partner Rocket Internet AG through the investment in
Africa Internet Holdings GmbH (AIH) and Middle East Internet Holdings S.A.R.L (MEIH). We will drive
our strategy of becoming the ICT partner of choice and continue to transform our operating
model through cost optimisation, operational efficiencies and commercialising our tower infrastructure.
We will continue to create shareholder value through our progressive dividend policy of growing
dividends between 5% and 15% a year.
SANCTIONS
MTN continues to work closely with all relevant authorities with regards to US and EU sanctions
against Iran, Syria and Sudan. Our international legal advisors continue to assist the Group in
remaining compliant with all applicable sanctions.
APPOINTMENT OF NEW BOARD MEMBER
During the period, the board appointed Dr Shaygan Kheradpir (54) as an Independent Non-Executive
Director to the Group board of directors, effective on 8 July 2015. Shaygan is a business and
technology executive based in the United States of America and holds a doctorate in electrical
engineering from Cornell University College of Engineering. Prior to this, he held various leadership
roles including, Executive Vice President and Chief Information Officer at Verizon, Group Chief
Operations & Technology Officer at Barclays Bank PLC in the United Kingdom and Chief Executive
Officer of Juniper Networks.
LEADING THE DELIVERY OF A "BOLD, NEW DIGITAL WORLD"
We continue working towards our Group vision to lead the delivery of a "bold, new Digital World" to
our customers. Over the past six months the Group focused on improving its business structure to
facilitate non-voice revenue growth. Dedicated Group Consumer and Group Digital functions have
been established to ensure MTN is well positioned to participate in a rapidly evolving industry,
effectively meeting our customers' needs through digital, financial and enterprise services.
Group Consumer
The Group Consumer function has been established to focus on supporting MTN's traditional voice,
data and SMS revenue while also enabling operations to effectively package these offerings to meet
our consumer segment needs. Customer analytics are central to understanding and segmenting our
offerings. Driving smartphone penetration, positioning MTN as a digital brand and creating synergies
across the Group for agile rollout of services are also key priorities.
Group Digital Services
MTN is well positioned to tap into the digital space on the African continent and in the Middle East.
The Group's Digital function aims to leverage our brand, customer base and distribution network to
accelerate growth in e-commerce, financial services, media and entertainment and lifestyle services.
Through our investments with Rocket Internet AG we continue to rollout a range of e-commerce and
lifestyle offerings with 128 operations across 30 markets.
During the period, we grew Mobile Money subscribers by 45,8% to 32,4 million. This performance
was underpinned by expanding our distribution base and product range to include international
remittances, savings, lending and insurance and retail payments.
Enterprise Business Unit
Our enterprise business unit (EBU) continued to work towards its vision of becoming the ICT partner
of choice to corporate, SME, public sector and financial services customers.
The key focus during the period was aligning the organisational structure and appointing industry
leaders in key markets to support this vision. The EBU has established strategic partnerships with
Amazon Web Services and Azuri Microsoft to enable the Group to effectively take products and
services to the market.
Transforming our operating model
The continued transformation of our operating model remains a key focus and has supported the
EBITDA margin for the period.
Key initiatives include:
- The continued rollout of Project Next!, with the completion in Cameroon expected
September 2015 and Benin and Management companies to be completed by year end;
- Implementation of an integrated charging system under a managed services platform,
enabling access to skilled resources and end-to-end accountability;
- Leveraging global procurement and expediting time to market.
FINANCIAL REVIEW
REVENUE
Group revenue declined by 4,9% to R69 210 million. Movements in the majority of the Group's
operational currencies against the rand negatively impacted performance. The rand strengthened by
8,7% against the Nigerian naira, 23,1% against the Ghanaian cedi, 10,6% against the Central African
Franc, 5,8% against the Ugandan shilling, 36,9% against the Syrian pound and weakened 5,7%
against the Sudanese pound.
Constant currency revenue grew marginally by 0,7%*. Growth was impacted by a 1,1%* decline in
MTN Nigeria's revenue due to a challenging operating environment and a 1,4% decline in MTN South
Africa's revenue following lower handset sales during the period.
The large opco cluster's revenue decreased by 6,3% on a reported basis while organic revenue grew
6,1%* supported by healthy double digit growth in Ghana and Sudan. This was, however, offset by
challenging financial performance in Cameroon as a result of growing competition. The small opco
cluster grew revenue marginally by 0,8%* supported by healthy double digit growth in Congo-
Brazzaville, Zambia, Guinea Bissau and South Sudan.
Outgoing voice revenue declined by 9,8% (4,0%*) and contributed 59,2% to total revenue.
Performance was negatively affected by price competition in key markets resulting in lower voice
tariffs. Across our operations APPM declined by 25,3% in US dollar terms.
Group data revenue (excluding SMS) increased by 21,3% (28,3%*), supported by an increase in
smartphone penetration and an expanded 3G and LTE network. Data usage increased 87,0%
following the strong uptake in data services and reduced tariffs. Data's contribution to total revenue
was 22,3%. Digital services and mobile financial services showed encouraging growth, increasing
their contribution to data revenue. MTN South Africa and MTN Nigeria were the largest
contributors, together accounting for 69,7% of MTN Group's total data revenue.
Group interconnect revenue declined by 7,9% (1,9%*) following a reduction in termination rates in
our Nigerian and South African operations in line with the glide paths.
EBITDA
EBITDA decreased by 10,1% (4,2%*) to R30 274 million. The Group EBITDA margin contracted by 2,6
pp to 43,7%, mainly as a result of lower EBITDA margins in Nigeria, Cameroon, Ivory Coast and
Uganda. This was partly offset by expansion in the EBITDA margin in MTN South Africa. While
operations continued to focus on cost optimisation, exchange rate movements against the US dollar
and high inflation had an unfavourable impact on margins.
DEPRECIATION AND AMORTISATION
Depreciation decreased by 4,3% ( increased 0,7%*) to R8 879 million as a result of the sale of towers
in Nigeria as well as the depreciation of the naira against the rand. Amortisation costs increased by
13,9% (20,8%*), driven by increased spending on software in South Africa and Cameroon as well the
licence acquisition in Syria.
NET FINANCE COSTS
Net finance costs of R2 320 million increased sharply from the R1 668 million recorded in the prior
comparable period. This was largely due to foreign currency losses in 2015 of R1 481 million, which
were mainly the result of:
- Mauritius functional currency losses of R253 million as a result of US dollar denominated
borrowings and foreign denominated intercompany receivables;
- Nigeria forex losses of R769 million incurred on US dollar borrowings as a result of the
devaluation of the naira;
- Ghana forex losses of R81 million as a result of the depreciation of the cedi;
Zambia forex losses of R93 million due to the weakening of the kwacha during the period;
- Head office forex losses of R172 million relating to foreign denominated receivables from
tower companies; and
- South Africa forex loss of R77 million due to the weakening of the rand during the period
TAXATION
The Group's taxation charge decreased by 14,2% (10.5%*) to R6 223 million and the effective tax
rate increased to 32,9% from 31,5%. The effective tax rate increase is largely a result of the end of
the tax holiday in Sudan in 2014, reversal of the deferred tax asset in Cameroon due to changes in
the corporate income tax rate and a lower Group profit before tax balance due to a decrease in
equity income from joint ventures and associates.
EARNINGS
Basic headline earnings per share (HEPS) decreased by 10,3%** to 654 cents** and attributable
earnings per share (EPS) decreased by 10,7%** to 653 cents**.
CASHFLOW
Cash inflows generated by operations decreased by 12,6%** to R26 289 million**. Cash generated
by operating activities decreased 77,0%** to R1 432 million** mainly as a result of a 19,6%**
increase in dividends paid of R2 413 million** and lower EBITDA.
CAPITAL EXPENDITURE
Capex increased by 18,0% (21,0%*) to R10 852 million, of which R283 million related to foreign
currency movements.
FINANCIAL POSITION
The Group reported net debt of R17 161 million** at the end of June 2015 compared to net debt of
R4 543 million** at 31 December 2014. This increase was due to the Group dividend payment of
R14 697 million** during the period, payment to minorities relating to the Nigeria tower sale of
R1 453 million and the additional investment in IHS Holdings Limited. This excludes R4 963 million
(49%) of net cash in MTN Irancell, which is accounted for on an equity basis.
BUSINESS COMBINATIONS/ACQUISITION OF JOINT VENTURES
Africa Internet Holding Gmbh (AIH)
Subsequent to the period end the Group exercised its rights to increase its investment in Africa
Internet Holding GmbH (AIH) to 41%. The Group continues to retain joint control over AIH.
OPERATIONAL REVIEW
SOUTH AFRICA
- Reported revenue declined 1,4%
- Data revenue increased 26,6%
- Revenue excluding handset and other revenue increased by 4,6%
- EBITDA margin expanded 2,3 pp to 35,6%
MTN South Africa delivered an improved performance despite disruptions caused by industrial strike
action, which took place between 20 May 2015 and 16 July 2015. The operation increased its
subscriber base by 1,8% to 28,5 million supported by attractive promotions and below-the-line
campaigns in the pre-paid segment. As a result, the prepaid subscriber base increased 2,7% to 23,2
million for the period. The post-paid segment declined its subscriber base 1,7% to 5,3 million largely
impacted by handset supply chain challenges.
Total revenue declined by 1,4% to R18 882 million. This was mainly due to a 27,5% reduction in
handset revenue although management expects this to improve in the second half supported by the
changes in the logistics process. Outgoing voice revenue decreased marginally by 0,4% while data
revenue delivered a meaningful improvement, growing by 26,6% for the period and now contributes
30,1% to total revenue. The number of smartphones on MTN's network increased by 9,1% to 5,8
million, and the number of data users increased by 18,1% to 17,3 million. Growth in smartphones
and data users was constrained by low handset availability.
MTN South Africa EBU and digital services showed positive momentum with the launch of "Internet
of Things" in the EBU space and more than 9 000 users taking up music+ in the digital area.
The EBITDA margin expanded by 2,3 pp. The operation benefited from lower handset and
commission costs, reduced roaming costs as well as a reduction in staff costs following
retrenchments made in 2014.
Capex for the period was R4 678 million, 133,9% higher than the comparable period. During the six
months, we added 267 new 2G sites and 1 939 largely co-located 3G sites and 1 891 LTE sites. The
key focus during the first half was the expansion of 3G and LTE coverage and improved network
quality in key cities. Rollout is expected to ramp up in the second half of the year.
We continue to have discussions with the authorities regarding the planned auction of 2.6 GHz and
3.5 GHz spectrum frequency and allocations.
NIGERIA
- Subscribers increased 4,9% to 62,8 million
- Revenue declined 1,1%*
- Data revenue increased 21,3%*
- Interconnect revenue increased by 10,6%*
- EBITDA margin decreased to 57,3%
MTN Nigeria's results were constrained by the weak macro-economic environment, aggressive
competition and operational execution challenges. Despite this, the operation grew its subscriber
base by 4,9%, increasing total subscribers to 62,8 million and maintained market share for the
period. Subscriber growth was underpinned by improved segmented offerings, churn management
and attractive promotions.
Total revenue declined 9,0% or 1,1%* in constant-currency terms. This was mainly impacted by a fall
in outgoing voice revenue as a result of lower competitor voice tariffs, increased pressure on
consumer spending and the use of multiple SIM cards, which is estimated to be almost 50% of the
subscriber base. The decline in the effective tariff translated into lower than expected minutes of
use for the period. Data revenue continued to show healthy growth, increasing 21,3%* despite a
decline in data tariffs and contributed 20,5% to total revenue. This was mainly attributable to the
growth in 3G device penetration, which increased 84,6% to 14,9 million and a 19,2% increase in data
users for the period. Digital revenue showed positive growth supported by the continued success of
the MTN music+ and other lifestyle services.
MTN Nigeria's Mobile Money offering, Diamond Yellow, continued to gain traction with 3 500
merchants now in place and approximately 4,3 million accounts registered at the end of June 2015.
The MTN Nigeria EBU continued to rollout offerings targeted at the SME segment. At the end of the
period the operation had more than 600 000 SMEs added to its MTN yellow directory.
The EBITDA margin declined by 2,8 pp to 57,3%. This was largely due to higher lease costs from the
sale of towers, the impact of a weaker naira on US dollar expenditure, an increase in dealer
commissions, digital services revenue share, higher interconnect costs and an increase in marketing
spend. Despite this, effective cost management enabled operational costs to be maintained below
inflation. The transfer of the final tranche of 4 696 towers was completed on 1 July 2015.
MTN Nigeria continued to expand 3G coverage and increase capacity of its 3G network. During the
period 286 new 2G sites and 744 co-located 3G sites were added. Capex declined by 63,2% in the
period to R1 172 million due to utilising existing inventory. MTN Nigeria continues to maintain sufficient
quality and headroom on its 2G radio network and the broader operation remains flexible to rollout
as required.
IRANCELL (Joint venture, equity accounted)
- Subscribers increased 0,5% to 44,1 million
- Revenue increased 13,9%*
- Data revenue increased 84,7%*
- EBITDA margin decreased to 40,1%
MTN Irancell delivered sound performance in a highly penetrated market. The operation grew its
subscriber base 0,5% to 44,1 million subscribers. The slower growth in net additions was largely due
to a delay in obtaining a new number range and regulatory requirements on registration.
Total revenue increased by 13,9%* compared to the prior year, supported by attractive promotions
and the adoption of 3G services. Data revenue increased by 84,7%* and now contributes 26,7% of
total revenue. This was mainly driven by an increase in the adoption of 3G enabled devices, which
grew 59,4% to 21,4 million. Data users increased 22,3% to 15,5 million for the period.
MTN Irancell's EBITDA margin declined by 4,3 pp to 40,1%, mainly as a result of costs associated with
the rollout of 3G and LTE as well as an increase in 2G regulatory fees.
MTN Irancell invested R3 783 million (100%) of capex during the period. It rolled out 117 LTE sites
and 1 401 3G sites to support 3G adoption. The operation continued to focus on network
modernisation and fibre rollout.
LARGE OPCO CLUSTER
- Subscribers increased 4,7% to 59,4 million
- Revenue increased 6,1%*
- Data revenue increased 44,1%*
- EBITDA margin contracted 1.0 pp to 35,3%
MTN Ghana increased its subscriber base by 7,5% to 14,9 million in a weak macro-economic
environment and against tough competition. The growth in net additions was attributable to an
expanded distribution network and a strong churn management programme focusing on below the
line offers.
Total revenue increased by 13,4%*, supported by a 75,9%* growth in data revenue. Data
contributed 27,2% to total revenue, underpinned by an expansion in the 3G network as well as a
focus on network quality. A significant uptake of mobile financial services and digital services also
contributed to data growth. MTN Mobile Money delivered a strong performance with 4,6 million
registered customers. This was attributable to an expansion in the agent network and
improvements in customer awareness.
MTN Ghana continued to focus on cost optimisation as the weakening of the cedi against the US
dollar resulted in significant pressure on US dollar-denominated expenses. Despite this,
MTN Ghana's EBITDA margin grew 1,0 pp* to 39,7%, also supported by the expiration of the
management fee agreement on 31 March 2014.
During the period, MTN Ghana invested R355 million in the network, adding 18 2G sites and
136 3G sites. The low spend was largely due to transition challenges associated with the
implementation of managed services. Capex is expected to accelerate during the second half of the
year.
MTN Cameroon's performance was below expectations mainly due to aggressive competition
resulting in lower effective tariffs. The operation was also impacted by the third operator's
exclusivity on 3G, which ended on 31 March 2015. Despite this MTN Cameroon increased its
subscriber base by 7,3% to 10,4 million and maintained its market share.
Total revenue declined by 0,4%*, largely impacted by a 7,7%* decrease in outgoing voice revenue.
This was due to a 15,7% fall in the effective tariff, which resulted in a marginal increase in billable
minutes of 7,4%. Data revenue increased by 45,7%*, contributing 11,5% to total revenue following
the finalisation of its 3G licence on 11 March 2015. Attractive 3G promotions and encouraging
growth in digital services and MTN Mobile Money contributed to data growth. At the end of June,
the operation had 1,7 million registered MTN Mobile Money customers.
MTN Cameroon's EBITDA margin decreased 4,6 pp to 37,8% as a result of an increase in rent and
utilities and transmission costs associated with significant 3G rollout and lower revenue.
Capex increased by 153% to R943 million largely due to an extensive 3G network rollout. During the
period the operation rolled out 95 2G and 282 largely co-located 3G sites.
MTN Ivory Coast delivered a satisfactory performance for the period increasing its subscribers by
5,9% to 8,5 million. This was attributable to successful retention promotions and penetration in
lower segments of the market.
Total revenue increased by 5,5%* supported by outgoing voice revenue and strong growth in data
revenue. Data revenue increased by 58,7%* and now contributes 14,5% of total revenue. 3G
network expansion and an increased uptake of digital and MTN Mobile Money offerings were key
contributors to data growth. MTN Mobile Money showed healthy growth, ending the period with 2,8
million customers, underpinned by remittances between Ivory Coast and Burkina Faso.
The operation's EBITDA margin declined by 1,0 pp to 36,5%. This was a result of high transmission
costs associated with 3G rollout and international transmission costs. MTN Ivory Coast spent
R422 million on its capex programme and rolled out 75 2G sites and 211 co-located 3G sites during
the period.
MTN Uganda increased its subscriber base by 7,2% to 11,1 million driven by attractive bundled
propositions, improved 3G coverage and increased take up of MTN Mobile Money. The operation
increased market share to 57,6% despite operating in a highly competitive market.
Total revenue increased by 2,6%* supported by outgoing voice revenue which was underpinned by a
12,5% increase in billable minutes. Data revenue grew only 8,5%* mainly as a result of low 3G
handset penetration and cancelled contracts with third party content providers. Total revenue was
further impacted by a 12,8%* decline in incoming voice revenue following the implementation of
the One Area Network in Eastern Africa resulting in reduced international and national roaming
revenue. MTN Mobile Money recorded a 12,8% increase in registered subscribers to 8,2 million.
MTN Uganda's EBITDA margin decreased by 0,9 pp to 36,0% impacted by higher commission costs
and US dollar denominated expenses.
Capex in the year amounted to R556 million, with 110 new 2G sites and 57 co-located 3G sites rolled
out, improving quality and capacity on the network.
MTN Syria recorded a 1,6% decline in its subscriber base to 5,8 million, operating under extremely
challenging conditions. Despite this, the operation marginally increased total revenue supported by
strong growth in data revenue. Data revenue increased 23,9%* and now contributes 27,2% of total
revenue. MTN Syria's EBITDA margin declined by 2,6 pp to 16,2%. High inflation and costs related to
maintaining the network were key contributing factors.
MTN Sudan showed encouraging progress despite a 2,2% decline in subscribers to 8,8 million
impacted by subscriber registration requirements. Total revenue increased by 17,2%* supported by
a 76,1%* increase in data revenue, contributing 18,0% to total revenue. The EBITDA margin declined
slightly to 33,5 % despite high inflation. Capex in the year amounted to R337 million.
SMALL OPCO CLUSTER
- Subscribers increased 3,9% to 33,5 million
- Revenue increased 0,8%*
- Data revenue increased 29,2%*
- EBITDA margin decreased 2,8 pp to 34,9%
The small opco cluster increased subscribers by 3,9% in a tough operating environment and weak
macro-economic conditions. Revenue was supported by solid growth in Zambia, Benin, Guinea
Bissau, Congo-Brazzaville and South Sudan, with Liberia continuing to show improvement from the
second half of 2014. Yemen continues to operate under challenging conditions with the majority of
the management team now based in Jordan, and Guinea Conakry's results were impacted by the
Ebola crisis. Data revenue increased 29,2%*, constrained largely by slow 3G device penetration. The
EBITDA margin declined by 2,8 pp to 34,9%. This was largely due to high inflation impacting costs.
Capex for the year amounted to R1 761 million with 288 2G and 210 co-located 3G sites added in the
period.
ANNEXURE
Pro forma financial information for the period ended 30 June:
Actual H1-15 Actual H1-14
(1) (2) excl (1) (2) excl
Actual Hyper- Tower hyperinflation Actual H1- Hyper- Tower hyperinflation Adjusted
ZAR (million) H1-15 inflation profit and tower profit 14 inflation profit and tower profit change %
Revenue 69 304 94 - 69 210 72 759 - - 72 759 (5)
Other income 411 - 352 59 303 - 99 204 (71)
EBITDA 30 675 49 352 30 274 33 762 99 33 663 (10)
Depreciation, amortisation and
impairment of goodwill 10 750 35 - 10 715 10 886 - - 10 886 2
Profit from operations 19 925 14 352 19 559 22 876 99 22 777 (14)
Net finance cost 2 319 (1) - 2 320 1 668 - - 1 668 (39)
Share of results of joint ventures
and associates after tax 2 027 362 - 1 665 1 691 (197) - 1 888 (12)
Monetary gain/(loss) 496 496 - - - - - - NM
Profit before tax 20 129 873 352 18 904 22 899 (197) 99 22 997 (18)
Income tax expense 6 249 26 - 6 223 7 261 - 8 7 253 14
Profit after tax 13 880 847 352 12 681 15 638 (197) 91 15 744 (19)
Non-controlling interests 1 980 105 75 1 800 2 248 - 1 2 247 20
Attributable profit 11 900 742 277 10 881 13 390 (197) 90 13 497 (19)
EBITDA margin 44.3% 43.7% 46.4% 46.3% (2.6)pp
Effective tax rate 31.0% 32.9% 31.7% 31.5% 1.4pp
1) Represents the exclusion of the hyperinflation impact of certain of the Group's subsidiaries
(MTN Sudan and MTN Syria) and the Group's joint venture in Iran, being accounted for on a
hyperinflationary basis in accordance with IFRS on the respective financial statement line items
affected.
2) Represents the exclusion of the financial impact relating to the sale of tower assets and related
movements during the financial period on the respective financial line items impacted, which
include: The re-measurement of the contingent consideration receivable relating to the Nigeria
tower transaction tranche 1 of R339 million and the Ghana release of deferred profit of R13 million
(H114: Zambia R60 million, Rwanda R5 million, Ghana R19 million and Ghana release of deferred
profit R15 million).
As the Group will continue in its strategy to monetise its passive infrastructure, similar tower sale
transactions may continue going forward. In addition, the impact of hyperinflation on the Group's
results will continue for as long as Syria, Sudan and Iran are considered to be hyperinflationary
economies.
Subscriber net additions guidance for 2015.
Mar 15 ('000) Jun 15 ('000)
South Africa 2 400 1 800
Nigeria 4 750 5 000
Iran 1 750 1 600
Large opco cluster 5 100 4 850
Ghana 1 100 1 500
Cameroon 1 500 1 150
Ivory Coast 800 800
Sudan 500 -
Syria - -
Uganda 1 200 1 400
Small opco cluster 3 380 3 380
Other JV's 120 120
Total 17 500 16 750
REVIEWED CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS IN ACCORDANCE WITH INTERNATIONAL FINANCIAL
REPORTING STANDARD (IAS) 34 INTERIM FINANCIAL REPORTING
The Group's reviewed condensed consolidated interim financial statements for the six months ended
30 June 2015 have been independently reviewed by the Group's external auditors. The preparation
of the Group's reviewed condensed consolidated interim financial statements was supervised by the
Group chief financial officer, BD Goschen, BCom, BCompt (Hons), CA(SA).
The results were made available on 5 August 2015.
Condensed consolidated
income statement
for the
Six months Six months Financial
ended ended year ended
30 June 30 June 31 December
2015 2014 2014
Reviewed Reviewed Audited
Note Rm Rm Rm
Revenue 69 304 72 759 146 930
Other income 411 303 7 928
Direct network operating costs (10 861) (10 692) (21 604)
Costs of handsets and other accessories (5 540) (5 667) (11 957)
Interconnect and roaming (6 330) (6 734) (13 653)
Staff costs (4 155) (4 289) (8 838)
Selling, distribution and marketing expenses (7 348) (7 179) (15 531)
Other operating expenses (4 806) (4 739) (10 084)
EBITDA 30 675 33 762 73 191
Depreciation of property, plant and equipment (8 905) (9 274) (18 262)
Amortisation of intangible assets (1 845) (1 612) (3 251)
Impairment of goodwill – – (2 033)
Operating profit 19 925 22 876 49 645
Net finance costs (2 319) (1 668) (3 668)
Net monetary gain 496 – 878
Share of results of joint ventures and
associates after tax 8 2 027 1 691 4 208
Profit before tax 20 129 22 899 51 063
Income tax expense (6 249) (7 261) (13 361)
Profit after tax 13 880 15 638 37 702
Attributable to:
Equity holders of the Company 11 900 13 390 32 079
Non-controlling interests 1 980 2 248 5 623
13 880 15 638 37 702
Basic earnings per share (cents) 7 653 731 1 752
Diluted earnings per share (cents) 7 650 727 1 742
Condensed consolidated statement
of comprehensive income
for the
Six months Six months Financial
ended ended year ended
30 June 30 June 31 December
2015 2014 2014
Reviewed Reviewed Audited
Rm Rm Rm
Profit after tax 13 880 15 638 37 702
Other comprehensive (loss)/income after tax:
Exchange differences on translating foreign operations
including the effect of hyperinflation° (3 273) (1 955) 2 968
– Equity holders of the Company (3 181) (1 882) 2 960
– Non-controlling interests (92) (73) 8
Total comprehensive income 10 607 13 683 40 670
Attributable to:
Equity holders of the Company 8 719 11 508 35 039
Non-controlling interests 1 888 2 175 5 631
10 607 13 683 40 670
° This component of other comprehensive (loss)/income does not attract any tax and may subsequently be reclassified to profit or loss.
Condensed consolidated statement
of financial position
as at
30 June 30 June 31 December
2015 2014 2014
Reviewed Reviewed Audited
Note Rm Rm Rm
Non-current assets 161 219 147 166 163 218
Property, plant and equipment 85 501 88 689 87 546
Intangible assets and goodwill 37 484 33 785 36 618
Investments in joint ventures and associates 24 978 15 859 25 514
Deferred tax and other non-current assets 13 256 8 833 13 540
Current assets 85 269 75 493 90 467
Non-current assets held for sale 15 3 959 137 3 848
81 310 75 356 86 619
Other current assets# 49 295 37 028 42 628
Restricted cash 1 001 745 893
Cash and cash equivalents 31 014 37 583 43 098
Total assets 246 488 222 659 253 685
Total equity 127 420 120 445 133 442
Attributable to equity holders of the Company 122 702 115 509 128 517
Non-controlling interests 4 718 4 936 4 925
Non-current liabilities 51 495 51 947 52 613
Interest-bearing liabilities 12 39 511 38 803 39 470
Deferred tax and other non-current liabilities 11 984 13 144 13 143
Current liabilities 67 573 50 267 67 630
Interest-bearing liabilities 12 16 548 8 973 13 809
Other current liabilities 51 025 41 294 53 821
Total equity and liabilities 246 488 222 659 253 685
#The increase in other current assets was mainly due to the increase in treasury bills, prepayments and the dividend receivable from Iran.
Condensed consolidated statement
of changes in equity
for the
Six months Six months Financial
ended ended year ended
30 June 30 June 31 December
2015 2014 2014
Reviewed Reviewed Audited
Rm Rm Rm
Opening balance at 1 January 128 517 116 479 116 479
Shares issued during the period ^ ^ 3
Shares cancelled during the period (^) (^) (^)
Share buy-back (^) – (2 422)
Share-based payment transactions 140 47 110
Settlement of vested equity rights – – (209)
Total comprehensive income 8 719 11 508 35 039
Profit after tax 11 900 13 390 32 079
Other comprehensive (loss)/income after tax (3 181) (1 882) 2 960
Dividends declared (14 697) (12 302) (20 527)
Other movements 23 (223) 44
Attributable to equity holders of the Company 122 702 115 509 128 517
Non-controlling interests 4 718 4 936 4 925
Closing balance 127 420 120 445 133 442
Dividends declared during the period
(cents per share) 800 665 1 110
Dividends declared after the period end
(cents per share) 480 445 800
^Amount less than R1 million.
Condensed consolidated statement
of cash flows
for the
Six months Six months Financial
ended ended year ended
30 June 30 June 31 December
2015 2014 2014
Reviewed Reviewed Audited
Rm Rm Rm
Net cash generated from operating activities 1 432 6 234 27 132
Cash generated by operations 26 289 30 078 64 628
Dividends paid to equity holders of the Company (14 697) (12 284) (20 527)
Dividends paid to non-controlling interests (3 042) (2 644) (4 289)
Dividends received from associates and joint ventures 285 349 508
Other operating activities (7 403) (9 265) (13 188)
Net cash used in investing activities (14 471) (8 607) (25 991)
Acquisition of property, plant and equipment and
intangible assets (11 830) (10 172) (22 844)
Movement in investments and other investing activities (2 641) 1 565 (3 147)
Net cash from financing activities 1 558 1 439 2 639
Net (decrease)/increase in cash and cash
equivalents (11 481) (934) 3 780
Cash and cash equivalents at beginning of period 43 072 39 577 39 577
Exchange losses on cash and cash equivalents (787) (1 071) (182)
Net monetary gain/(loss) on cash and cash equivalents 134 – (103)
Net cash and cash equivalents at end of period 30 938 37 572 43 072
Notes to the condensed consolidated
interim financial statements
for the six months ended 30 June 2015
1. INDEPENDENT REVIEW
The directors of the Company take full responsibility for the preparation of the condensed consolidated
interim financial statements.
The condensed consolidated interim financial statements have been reviewed by our joint independent
auditors, PricewaterhouseCoopers Inc. and SizweNtsalubaGobodo Inc., who have expressed an
unmodified conclusion. The joint external auditors have performed their review in accordance with
International Standard on Review Engagements (ISRE) 2410. A copy of their report is available for
inspection at the registered office of the Company. Constant currency and other pro-forma
disclosure have not been reviewed by our joint external auditors.
2. GENERAL INFORMATION
MTN Group Limited (the Company) carries on the business of investing in the telecommunications
industry through its subsidiary companies, joint ventures and associates.
3. BASIS OF PRESENTATION
These condensed consolidated interim financial statements for the six months ended 30 June 2015 have
been prepared in accordance with International Financial Reporting Standard (IAS) 34 Interim financial
reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee,
Financial Pronouncements as issued by the Financial Reporting Standards Council (FRSC), the JSE Listings
Requirements and the requirements of the South African Companies Act, No 71 of 2008. The condensed
consolidated interim financial statements should be read in conjunction with the annual financial statements
for the year ended 31 December 2014, which have been prepared in accordance with International Financial
Reporting Standards (IFRS).
4. PRINCIPAL ACCOUNTING POLICIES
The Group has adopted all the new, revised or amended accounting pronouncements as issued by the
International Accounting Standards Board (IASB) which were effective for the Group from 1 January 2015,
none of which had a material impact on the Group.
The accounting policies applied in the preparation of the condensed consolidated interim financial
statements are in terms of IFRS and are consistent with those accounting policies applied in the
preparation of the previous consolidated annual financial statements.
5. FINANCIAL INSTRUMENTS
The Group has not disclosed the fair values of all financial instruments measured at amortised cost, as their
carrying amounts closely approximate their fair values. Other than investments, there were no financial
instruments measured at fair value that were individually material at the end of the current reporting period.
Investments
Fair value measurement
The Group holds an equity investment in IHS Holdings Limited (IHS) at fair value of R7 259 million at
30 June 2015 (December 2014: R5 912 million). The investment is classified as available-for-sale and
categorised within level 2 in the fair value hierarchy. The fair value is based on observable market inputs
and the increase is mainly due to the additional investment in IHS.
6. SEGMENT ANALYSIS
The Group has identified reportable segments that are used by the Group executive committee (chief
operating decision-maker (CODM)) to make key operating decisions, allocate resources and assess
performance. The reportable segments are geographically differentiated regions and grouped by their
relative size.
Operating results are reported and reviewed regularly by the CODM and include items directly attributable
to a segment as well as those that are attributed on a reasonable basis, whether from external transactions
or from transactions with other Group segments. EBITDA is used as the measure of reporting profit or loss
for each segment.
During 2014, and as reported in the December 2014 annual financial statements, the CODM resolved
to review segment results on a basis excluding profits realised in respect of the sale of towers and
other related movements during the respective financial year. In addition, Irancell Telecommunication
Company Services (PJSC), which previously formed part of the large opco cluster in terms of the segmental
presentation of financial results, is now presented to the CODM on a standalone basis. The June 2014
comparatives were adjusted accordingly.
Six months Six months Financial
ended ended year ended
30 June 30 June 31 December
2015 2014 2014
Reviewed Reviewed Audited
Rm Rm Rm
Revenue
South Africa 18 882 19 157 38 922
Nigeria 24 649 27 099 53 995
Large opco cluster 14 798 15 794 31 200
Ghana 3 496 3 792 7 149
Cameroon 2 742 3 048 6 194
Ivory Coast 3 081 3 232 6 418
Uganda 2 540 2 624 5 289
Syria^^ 1 329 1 802 3 449
Sudan^^ 1 610 1 296 2 701
Small opco cluster 10 992 10 910 22 385
Major joint venture – Iran°° 6 435 5 660 11 631
Head office companies and eliminations (111) (201) (348)
Hyperinflation impact 94 – 776
Iran revenue exclusion°° (6 435) (5 660) (11 631)
69 304 72 759 146 930
^^ Excludes the increase in revenue resulting from hyperinflation accounting of: Syria R28 million (June 2014: Nil, December 2014:
R434 million), Sudan R66 million (June 2014: Nil, December 2014: R342 million).
°° Irancell Telecommunication Company Services (PJSC) proportionate revenue is included in the segment analysis as reviewed
by the CODM and excluded from IFRS reported revenue due to equity accounting for joint ventures and excludes the increase
in revenue resulting from hyperinflation accounting of R271 million (June 2014: R215 million, December 2014: R1 655 million).
Six months Six months Financial
ended ended year ended
30 June 30 June 31 December
2015 2014 2014
Reviewed Reviewed Audited
Rm Rm Rm
EBITDA
South Africa 6 724 6 382 12 509
Nigeria 14 132 16 280 31 620
Large opco cluster 5 218 5 711 11 439
Ghana 1 387 1 467 2 674
Cameroon 1 036 1 291 2 651
Ivory Coast 1 126 1 213 2 475
Uganda 915 967 2 074
Syria>> 215 338 651
Sudan>> 539 435 914
Small opco cluster 3 835 4 108 8 083
Major joint venture – Iran~ 2 582 2 514 4 982
Head office companies and eliminations 365 1 182 1 869
Hyperinflation impact 49 – 241
Tower sale profits and other related
movements 352 99 7 430
Iran EBITDA exclusion~ (2 582) (2 514) (4 982)
EBITDA 30 675 33 762 73 191
Depreciation, amortisation and impairment of
goodwill (10 750) (10 886) (23 546)
Net finance cost (2 319) (1 668) (3 668)
Net monetary gain 496 – 878
Share of results of joint ventures and associates
after tax 2 027 1 691 4 208
Profit before tax 20 129 22 899 51 063
>> Excludes the increase in EBITDA resulting from hyperinflation accounting of: Syria R25 million (June 2014: Nil, December 2014:
R111 million), Sudan R24 million (June 2014: Nil, December 2014: R130 million).
~ Irancell Telecommunication Company Services (PJSC) proportionate EBITDA is included in the segment analysis as reviewed
by the CODM and excluded from IFRS reported EBITDA due to equity accounting for joint ventures and excludes the increase
in EBITDA resulting from hyperinflation accounting of R141 million (June 2014: R84 million, December 2014: R776 million).
Six months Six months Financial
ended ended year ended
30 June 30 June 31 December
2015 2014 2014
Reviewed Reviewed Audited
7. EARNINGS PER ORDINARY SHARE
Number of ordinary shares in issue
At end of the period (excluding
MTN Zakhele and treasury shares##) 1 822 473 178 1 832 860 765 1 822 213 500
Weighted average number of shares
Shares for earnings per share 1 821 338 035 1 832 859 145 1 831 196 131
Add: dilutive shares
– MTN Zakhele shares issued 7 685 193 7 050 704 7 192 687
– Share schemes 1 333 429 2 548 461 2 865 069
Shares for dilutive earnings per share 1 830 356 657 1 842 458 310 1 841 253 887
## Treasury shares of 10 444 797 (June 2014: 1 592 211 and December 2014: 11 649 825) are held by MTN Holdings Proprietary
Limited and are therefore excluded from this reconciliation.
Six months Six months Financial
ended ended year ended
30 June 30 June 31 December
2015 2014 2014
Reviewed Reviewed Audited
Rm Rm Rm
Reconciliation between profit attributable to the
equity holders of the Company and headline earnings
Profit after tax 11 900 13 390 32 079
Loss on disposal of property, plant and
equipment and intangible assets (IAS 16 and
IAS 38) 6 49 69
Realisation of deferred gain (IAS 28) – (197) (364)
Loss on disposal of investment in joint venture
(IAS 28) – – 15
Net impairment loss on property, plant and
equipment and intangible assets (IAS 36) 27 224 708
Impairment of goodwill (IAS 36) – – 2 033
Realisation of deferred gain on disposal of non-
current assets held for sale (IFRS 5) (13) (15) (31)
Profit on disposal of non-current assets held for
sale (IFRS 5) – (84) (7 399)
Total tax effects of adjustments – 6 (326)
Total non-controlling interest effect of
adjustments (6) (19) 1 339
Basic headline earnings+ 11 914 13 354 28 123
Earnings per share (cents)
– Basic 653 731 1 752
– Basic headline 654 729 1 536
Diluted earnings per share (cents)
– Diluted 650 727 1 742
– Diluted headline 651 725 1 527
+ Headline earnings is calculated in accordance with circular 2/2013 Headline Earnings as issued by the South African Institute of
Chartered Accountants at the request of the JSE Limited.
Six months Six months Financial
ended ended year ended
30 June 30 June 31 December
2015 2014 2014
Reviewed Reviewed Audited
Rm Rm Rm
8. SHARE OF RESULTS OF JOINT VENTURES
AND ASSOCIATES AFTER TAX 2 027 1 691 4 208
Irancell Telecommunication Company
Services (PJSC) 2 099 1 547 4 113
Others (72) 144 95
9. CAPITAL EXPENDITURE INCURRED 10 869 9 199 25 406
10. CONTINGENT LIABILITIES 287 886 932
11. AUTHORISED CAPITAL EXPENDITURE
FOR PROPERTY, PLANT AND EQUIPMENT
AND SOFTWARE 29 693 26 151 29 693
12. INTEREST-BEARING LIABILITIES
Bank overdrafts 76 11 26
Current borrowings 16 472 8 962 13 783
Current liabilities 16 548 8 973 13 809
Non-current borrowings 39 511 38 803 39 470
56 059 47 776 53 279
13. ISSUE AND REPAYMENT OF DEBT AND EQUITY SECURITIES
During the period under review the following entities raised and repaid significant debt instruments:
– MTN Nigeria Communications Limited (MTN Nigeria) repaid R1,3 billion relating to long-term borrowings.
– MTN Holdings Proprietary Limited (MTN Holdings) raised R3 billion additional debt through the General
Banking Facilities, which are short term in nature.
– MTN Holdings repaid R500 million relating to the Syndicated Loan Facility and R4,2 billion relating to
General Banking Facilities.
– MTN International (Mauritius) Limited (MTN Mauritius) raised R5,9 billion debt through a revolving credit
facility.
There have been no repayments (December 2014: R2,4 billion) in terms of the Domestic Medium-Term
Programme previously established by MTN Holdings in the period.
During the period, MTN Holdings acquired 309 shares (December 2014: 10 704 475 shares) in the ordinary
share capital of the Company. The cumulative repurchase is 1.8% of issued shares since 2011. The shares
so acquired are fully paid up and are held as treasury shares.
14. BUSINESS COMBINATIONS, ACQUISITION OF JOINT VENTURES AND OTHER INVESTMENTS
Nashua subscriber base, Afrihost Proprietary Limited, Middle East Internet Holdings S.A.R.L (MEIH)
and Africa Internet Holding Gmbh (AIH)
The net fair value of the assets and liabilities relating to the prior year acquisitions described in the heading
above were finalised during the period and no material changes to the previously reported results
were required.
Conversion of loan to Ghana Tower Interco BV into equity
During the period under review the Group accounted for the conversion of a portion of its loan to Ghana
Tower Interco BV, a related party, into equity, for an amount of R1,3 billion.
15. EVENTS AFTER REPORTING PERIOD
Disposal of Base Transceiver Stations (BTS/Towers) in Nigeria classified as a non-current asset held
for sale
On 1 July 2015 the Group finalised the transaction with IHS Holdings Limited (IHS) for the disposal of
mobile network towers by MTN Nigeria. Tranche 1 of the transaction constituting 4 154 towers was
concluded during 2014 and tranche 2 constituting 4 696 towers closed independently on 1 July 2015.
The Group retained an interest in the tower business and MTN Nigeria will be the anchor tenant on
commercial terms on the towers for an initial term of 10 years. Tranche 2 of the transaction was closed on
terms and conditions similar to tranche 1.
Additional investment in AIH
Subsequent to period end the Group exercised its rights to increase its investment in AIH to 41%. The
Group continues to retain joint control over AIH.
Changes in Liberia operating licence
With effect from 1 July 2015, the Group entered into a new operating licence agreement in Liberia in
accordance with the New Licence Regime of the Liberia Telecommunications Authority. The licence
provides for a 15 year tenure from the effective date (previously 10 years), is technology neutral and
allows MTN Liberia to operate under one licence for all of its operational services. The licence also includes
certain amendments to the regulatory fee structure going forward.
Dividends declared
Dividends declared at the board meeting held on 4 August 2015 amounted to 480 cents per share.
Declaration of interim ordinary dividend
Notice is hereby given that a gross interim dividend of 480 cents per share for the period to 30 June
2015 has been declared payable to MTN shareholders. The dividend is declared out of retained earnings. The number of ordinary shares in issue at the date of this declaration is 1 845 493 245
(including 10 444 797 treasury shares).
The dividend will be subject to a maximum local dividend tax rate of 15% which will result in a net
dividend of 408 cents per share to those shareholders that bear the maximum rate of dividend
withholding tax of 72 cents per share. The net dividend per share for the respective categories of
shareholders for the different dividend tax rates is as follows:
0% 480 cents per share
5% 456 cents per share
7.5% 444 cents per share
10% 432 cents per share
12.5% 420 cents per share
15% 408 cents per share
These different dividend tax rates are a result of the application of tax rates in various double
taxation agreements as well as exemptions from dividend tax.
MTN Group Limited's tax reference number is 9692/942/71/8. In compliance with the requirements
of Strate, the electronic settlement and custody system used by the JSE Limited, the salient dates
relating to the payment of the dividend are as follows:
Declaration Date Wednesday, 5 August 2015
Last day to trade cum dividend on the JSE Friday, 21 August 2015
First trading day ex dividend on the JSE Monday, 24 August 2015
Record date Friday, 28 August 2015
Payment date Monday, 31 August 2015
No share certificates may be dematerialised or re-materialised between Monday, 24 August 2015
and Friday, 28 August 2015, both days inclusive. On Monday, 31 August 2015, the dividend will be
transferred electronically to the bank accounts of certificated shareholders who make use of this
facility.
In respect of those who do not use this facility, cheques dated Monday, 31 August 2015 will be
posted on or about that date. Shareholders who hold dematerialised shares will have their accounts
held by the Central Securities Depository Participant or broker credited on Monday, 31 August 2015.
The Board confirms that the Group will satisfy the solvency and liquidity test immediately after
completion of the dividend distribution.
For and on behalf of the Board
PF Nhleko RS Dabengwa
Chairman Group President and CEO
Fairland
4 August 2015
Any forward-looking information contained in this announcement has not been audited or reported
on/reviewed by the Company's external auditors.
For further information on the MTN annual results please refer to the Investor Relations section on
the Group's website: www.mtn.com/investors
Administration
Registration number: 1994/009584/06 MTN Group sharecare line
ISIN: ZAE000042164 Toll free: 0800 202 360 or +27 11 870 8206
Share code: MTN if phoning from outside South Africa
Board of Directors
PF Nhleko*** Office of the Transfer Secretaries
RS Dabengwa* Computershare Investor Services Proprietary Limited
BD Goschen* Registration number 2004/003647/07
A Harper#*** 70 Marshall Street, Marshalltown
KP Kalyan*** Johannesburg, 2001
S Kheradpir++*** PO Box 61051, Marshalltown, 2107
NP Mageza***
MLD Marole*** Joint Auditors
AT Mikati+** PricewaterhouseCoopers Inc.
MJN Njeke*** 2 Eglin Road, Sunninghill, 2157
KC Ramon*** Private Bag X36, Sunninghill, 2157
JHN Strydom** SizweNtsalubaGobodo Inc.
F Titi*** 20 Morris Street East
AF van Biljon*** Woodmead, 2157
J van Rooyen*** PO Box 2939, Saxonwold, 2132
++American Sponsor
+Lebanese Deutsche Securities (SA) Proprietary Limited
#British 3 Exchange Square, 87 Maude Street, Sandton, 2196
*Executive
**Non-executive Attorneys
***Independent non-executive director Webber Wentzel
10 Fricker Road, Illovo Boulevard, Sandton, 2107
Group Secretary PO Box 61771, Marshalltown, 2107
SB Mtshali
Private Bag X9955, Cresta, 2118 Contact details
Telephone: National (011) 912 3000
Registered Office International +27 11 912 3000
216 – 14th Avenue, Fairland, 2195 Facsimile: National (011) 912 4093
International +27 11 912 4093
American Depository Receipt
(ADR) programme: E-mail: investor_relations@mtn.co.za
Cusip No. 62474M108 ADR to ordinary Share 1:1 Internet: http://www.mtn.com
Depository
The Bank of New York
101 Barclay Street, New York NY. 10286, USA
Sponsor: Deutsche Securities (SA) Proprietary Limited
Date: 05/08/2015 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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