MTN Cover page

 

 

Five-year review

Financial information   December
2007
December
2006
December
2005* #
March
2005*
March
2004*

Income statement – extracts (Rm)Revenue   73 145 51 595 27 212 28 994 23 871
EBITDA   31 845 22 413 11 231 12 000 9 055
Profit from operations   22 872 16 094 8 478 8 998 6 679
Net finance costs   (3 173) (1 427) (373) (270) (604)
Income tax expense   (7 791) (2 591) (1 411) (1 494) (1 101)
Minority interests   (1 308) (1 489) (838) (895) (612)
Attributable earnings   10 608 10 610 5 866 6 357 4 371
Basic headline earnings   10 886 10 628 5 984 6 339 4 370
Balance sheet – extracts (Rm)            
Property, plant and equipment   39 463 30 647 20 676 15 787 10 904
Goodwill   25 744 27 017 2 650 33 33
Intangible assets   13 053 13 088 4 057 1 846 1 784
Investments and loans   2 493 2 925 2 367 667 560
Deferred taxation   1 332 2 605 1 386 818 356
Bank balances, deposits and cash   17 607 10 091 7 560 6 429 5 336
Other current assets   15 894 10 544 6 116 4 150 3 307
Total assets   115 586 96 917 44 812 29 730 22 280
Ordinary shareholders’ interest   47 315 38 696 19 716 16 083 10 128
Minority interests   4 187 4 033 3 380 2 333 1 418
Interest-bearing liabilities   33 657 32 979 8 605 3 240 4 149
Non-interest-bearing liabilities   27 751 18 431 12 258 7 378 5 919
Deferred taxation   2 676 2 778 853 696 666
Total liabilities   64 084 54 188 21 716 11 314 10 734
Total equity and liabilities   115 586 96 917 44 812 29 730 22 280
Cash flow statement – extracts (Rm)            
Net cash flow from operations   34 334 22 934 11 367 12 303 10 027
Cash inflows from operating activities   25 850 17 622 9 159 9 501 8 597
Cash outflows for investing activities   (17 152) (35 711) (12 920) (7 551) (4 898)
Cash outflows/inflows from financing            
activities   (2 135) 18 993 5 357 222 233
Cash and cash equivalents   15 546 9 008 7 164 5 772 5 231
Dividends paid   (1 675) (1 083) (1 081) (680)
Capital expenditure   (15 348) (9 796) (6 732) (7 576) (5 048)
Performance per ordinary share            
Basic headline earnings (cents)   584,8 606,5 359,8 382,0 263,7
Adjusted headline earnings (cents)   681,9 584,7 338,2 366,0 253,1
Attributable earnings (cents)   569,9 605,4 352,7 383,0 253,1
Dividends (cents)   90,0 65 65 41
Net asset value – book value (rand)(1)   25,4 20,80 11,84 9,67 6,11
Returns and profitability ratios            
Return on assets (%)(2)***   21,5 22,7 30,33 34,6 33,3
Return on average shareholders’ funds (%)(3)**   25,3 36,4 44,57 48,4 51,7
Ebitda margin (%)   43,5 43,4 41,3 41,4 37,9
Enterprise value/EBITDA multiple (times)(4)***   8,1 8,3 7,2 6,0 6,1
Effective taxation rate (%)   39,5 17,6 17,4 17,1 18,1
Solvency and liquidity ratios            
Gearing (%)(5)   31,2 53,6 4,5 (17,3) (10,3)
Interest cover (times)(6)   4,6 4,9 10,7 15,3 8,9
Dividend cover (times)(7)   4,3 6,3 5,2 5,6 6,2
Net debt to EBITDA(8)***   0,5 1,0 0,1 (0,3) (0,1)
Operating cash flow/revenue (%)   46,9 44,5 41,8 42,4 42,0
Share performance            
Number of ordinary shares in issue (million)            
    – at year-end   1 864,8 1 860,3 1 665,3 1 662,5 1 658,8
    – weighted average during the year   1 861,5 1 752,3 1 663,2 1 659,7 1 654,4
Closing price (cents per share)   12 806 8 530 6 215 4 400 3 296
Market capitalisation (Rm)   238 806 158 684 103 498 73 150 54 674

 

Operational information   2007
December
2006
December
2005
December
2005
March
2004
March

South Africa            
Mobile penetration (%)   86 74 62 44 36
Market share (%)   36 36 35 38 38
Subscribers (million)   15 12 10 8 6
ARPU (ZAR)   149 159 169 184 203
EBITDA margin (%)   35 34 32 34 30
Capex/sales (%)   10 10 15 10 7
Nigeria            
Mobile penetration (%)   28 19 13 7 3
Market share (%)   43 46 47 47 48
Subscribers (million)   17 12 8 6 2
ARPU (USD)   17 18 22 40 51
EBITDA margin (%)   57 57 52 52 51
Capex/sales (%)   24 25 43 59 49
Ghana**            
Mobile penetration (%)   33 22      
Market share (%)   52 52      
Subscribers (000)   4016 2585      
ARPU (USD)   15 17      
EBITDA margin (%)   51 42      
Capex/sales (%)   31 28      
Sudan**            
Mobile penetration (%)   21 12      
Market share (%)   28 25      
Subscribers (000)   2090 1066      
ARPU (USD)   12 16      
EBITDA margin (%)   36 17      
Capex/sales (%)   60 74      
Iran            
Mobile penetration (%)   37 20      
Market share (%)   23 1      
Subscribers (000)   6006 154      
ARPU (USD)   10 9      
EBITDA margin (%)   (13) (75)      
Capex/sales (%)   116 1003      

Definitions

(1) Ordinary shareholders’ interest divided by the number of ordinary shares in issue at year-end
(2) Profit from operations as a percentage of the average of the opening and closing balances of total assets
(3) Headline earnings as a percentage of the average of the opening and closing balances of ordinary shareholders’ interest
(4) Market capitalisation less net debt (interest-bearing liabilities less bank balances, deposits and cash) divided by EBITDA
(5) Net debt as a percentage of total equity
(6) Profit from operations divided by finance costs
(7) Headline earnings divided by total dividend
(8) Interest-bearing liabilities less cash, divided by EBITDA

*restated to comply with IFRS
** included from date of acquisition
*** annualised
# nine months to 31 December 2005