16 / 96
Financial capital
How we create value using the six capitals
continued
We leverage on equity and retained earnings generated by our operations to fund our
business and achieve its growth. This financial capital enables us to deliver on our
strategic themes of creating and managing stakeholder value (including dividends for
shareholders, salaries for employees and investment in communities); of driving
sustainable growth (by developing new opportunities in data, enterprise, financial
services and content) and transforming our operating model (through procurement
savings and capex efficiency in major markets).
In the year, we reached agreement to settle MTN Nigeria’s regulatory fine, we repatriated
funds from MTN Irancell and successfully restructured the balance sheet. Competitive
pressure on data pricing suppressed revenue growth. This, and the need to maintain
momentum in rolling out our data network led to lower returns of capital invested.
•
Secured US$1 billion bond
•
Repatriated R6,3 billion in cash from our Iran
operation in 2016 (see
24)
•
Agreed to settle NGN330 billion fine, reducing
headline earnings
•
Reduced dividend from 1 310 cents to
700 cents per share
•
Improved our debt maturity profile
•
Concluded significant rand banking facilities
•
Secured local currency funding in many
markets
•
Updated and increased our domestic medium-
term note programme
By applying financial capital, we are able to
grow our business, positively impacting on
manufactured, human and intellectual capital,
as well as social and relationship capital.
However, through our use of financial capital to
build new telecoms infrastructure we may
negatively impact on the stocks of natural
capital.
Our efforts to preserve financial capital through
outsourcing and creating greater efficiencies
have some negative implications for human and
manufactured capital, but enable us to return
more cash to shareholders.
2016
2015
Market capitalisation (R billion) at year-end
238
245
Interest received (R billion)
4,4**
5,4**
Net debt (R billion)
51,9**
31,6**
2016
2015
Profit/(loss) after tax (R billion)
(3,1)**
23,6**
Operating profit (R billion)
14,1**
35,3**
Cash generated through operations
(R billion)
55,7**
57,6**
Net debt to EBITDA ratio^
1,01
0,46
Net interest paid (R billion)
3,7**
1,6**
Basic headline earnings/(loss) per
share (cents)
(77)**
746**
Dividends declared to shareholders
(R billion)
13,0
24,0
S&P Global Ratings long-term
credit rating
BB+
BBB-
^ Excluding the Nigerian fine.
**Reported – includes hyperinflation and the relating goodwill
impairment, tower profits, Nigeria fine and MTN Zakhele Futhi
impact.
MTN Group Limited
Integrated Report 2016
14