47 / 96
Actual
2015
Hyper-
inflation
(1)
Tower
profit
(2)
Nigeria
regulatory
fine
(4)
Actual
2015
adjusted
Adjusted
change
%
147 063
710
–
–
146 353
–
8 409
1
8 263
145
110
59 125
231
8 263
(9 287)
59 918
(13)
23 797
473
–
–
23 324
11
35 328
(242)
8 263
(9 287)
36 593
(29)
3 010
5
–
–
3 005
222
1 226
(1 768)
–
–
2 994
(42)
1 348
1 348
–
–
–
NM
34 892
(667)
8 263
(9 287)
36 583
(50)
11 322
91
(707)
11 938
(35)
23 570
(758)
8 970
(9 287)
24 645
(57)
3 366
231
1 854
(1 966)
3 247
(46)
20 024
(989)
7 116
(7 321)
21 398
(59)
40,2%
40,9% (5,5) pp
32,4%
32,6% 9,8 pp
(4)
Represents the impact of the Nigerian regulatory fine subsequent to conclusion of the settlement agreement during 2016 on the
respective financial line items impacted, which include:
• The re-measurement impact when the settlement agreement was entered into on 10 June 2016, constituting the difference between
the balance of the provision recorded on this date (after taking into account finance cost accrued from the beginning of the financial
year up to 9 June 2016) and the present value of the financial liability arising on this date in accordance with IFRS (included in the
EBITDA line);
• The finance cost impact recognised as a result of the unwind of the discounting of the provision (for the period from 1 January to
9 June 2016) and the financial liability (for the period from 10 June 2016 to reporting date).
◊
Additional depreciation from hyperinflation adjustments related to the unwind of Sudan assets historically written up. R223 million of
the goodwill impairment recognised in relation to MTN Syria relates to the previously recorded hyperinflation uplift.
information has been prepared excluding the impact of hyperinflation. In 2015, the Iranian economy was assessed to no longer be a
hyperinflationary environment. MTN therefore discontinued hyperinflation accounting in that operation effective 1 July 2015. In
addition, during 2016, Sudan was no longer considered to be a hyperinflationary economy from 1 July 2016 and hyperinflation
accounting was discontinued from this date onwards. The economy of South Sudan was assessed to be hyperinflationary effective
1 January 2016, and hyperinflation accounting was applied for the year ended 31 December 2016.
* Constant currency (“organic”) information.
** Reported-includes hyperinflation and the relating goodwill impairment, tower profits, the Nigerian regulatory fine (as defined above)
and the MTN Zakhele Futhi impact (as defined above).
*** The forward-looking financial information disclosed in this integrated report has not been reviewed or audited or otherwise reported
on by our external joint auditors.
The Group’s results are presented on a regional basis in line with the Group’s new operational structure. This is comprised of South and
East Africa (SEA), West and Central Africa (WECA) and Middle East and North Africa (MENA) and their respective underlying operations
further outlined below.
The SEA region includes: South Africa, Uganda, Zambia, Rwanda, South Sudan, Botswana (joint venture-equity accounted), Swaziland
(joint venture-equity accounted) and Business Group. The WECA region includes: Nigeria, Ghana, Cameroon, Ivory Coast, Benin, Congo
Brazzaville, Liberia, Guinea Conakry and Guinea Bissau. The MENA region includes: Iran (joint venture-equity accounted), Syria, Sudan,
Yemen, Afghanistan and Cyprus.
Although Iran, Botswana and Swaziland form part of their respective regions geographically and operationally, they are excluded from
their respective regional results due to being equity accounted for by the Group.
MTN Group Limited
Integrated Report 2016
45
PERFORMANCE
DETAILS