Posted by By Tayo Ajakaye, on
Nigeria's mobile telecom service provider, MTN Nigeria Communica-tions Ltd has declared a gross earnings of N119 billion (R5.87 billion) for the six month period ended September 30, 2005. It also recorded a profit after tax of N41.3 billion (R2.03 billion) from its operations in Nigeria.
* Oando lists on Johannesburg Stock Exchange today
Nigeria's mobile telecom service provider, MTN Nigeria Communica-tions Ltd has declared a gross earnings of N119 billion (R5.87 billion) for the six month period ended September 30, 2005. It also recorded a profit after tax of N41.3 billion (R2.03 billion) from its operations in Nigeria.
Also today in Johannesburg, South Africa, one of Nigeria's petroleum marketing company, Oando Plc, will be listed on the southern African country's stock exchange.
According to the MTN results released yesterday in Johannesburg, only the South African operations outperformed MTN Nigeria with a superb R9.8 billion revenue (N199.7 billion). But MTN South Africa has 8,961 of the MTN Group's 20.6 million subscribers as against MTN Nigeria's 7,667 million subscribers.
For the first time since it was founded in 1994, MTN overtook arch-rival on subscriber base. While Vodacom only signed on its 20th million subscriber early November, MTN already has 20.6 million subscribers as at September 2005.
With the assistance of the Nigeria operations, MTN Group is now ahead of Vodacom on all parameters including subscriber base, revenue and profits.
MTN Group's revenue was R17.2 billion as opposed to Vodacom's R16.18 billion announced November 14, 2005. Also, MTN Group's profit of R4.5 billion nearly doubled Vodacom's profit of R2.36 billion.
MTN said that the performance of its Nigeria operations recorded a 28 percent growth over the results for the same period last year.
'MTN Nigeria increased its subscriber base to 7,667,000, a 38 percent growth since March 2005. The strong growth in subscriber numbers is fuelled by continued strong demand for telecommunication services and low connection fees. The tariff environment has remained very competitive, particularly in the reseller market. As expected, blended average revenue per user (ARPU) has declined to $23, with marginal ARPU levels at approximately $16", MTN said in the results.
Nigeria's ARPU of $23 is about two dollars lower that the South African ARPU of $25, a clear indication that revenue per user has continued to fall.
'MTN Nigeria continues to hold the largest share of the market with an estimated 47 percent market share. The focus of the operation remains on maintaining network quality standards, while increasing coverage in the rapidly expanding market.
'MTN Nigeria's network roll out is proceeding as planned with the commissioning of 335 new base stations and two new switches during the six months. Total capital expenditure for the period was R2.2 billion. All profits generated by the business have been reinvested into the Nigerian operation,", the statement of accounts reads.
Although the Group noted that a significant proportion of its revenue and profits is generated outside South Africa, the fluctuation of the functional currencies of its international operations against the Rand continues to affect the Group's consolidated results.
Nonetheless, it had positive words for the naira when it stated that 'of most relative importance is the Nigerian naira, which has remained relatively stable against the rand during the six months under review compared with the average rate for the comparative period in the previous year."
The highlights of the results show adjusted headline earnings per share (EPS) increasing by 30.8 percent to 222.5 cents while revenue increased by 25.2 percent to R17.2 billion.
Excluding the revenue contributed by the new acquisitions, revenue still increased by 22.3 percent.
The results also showed that Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose to R7.2 billion and adjusted profit after tax (PAT) to R4.2 billion was recorded.
These reflected increases of 27.6 percent and 30.8 percent in EBITDA and PAT, respectively, compared to the six months to September 30, 2004.
Meanwhile, major oil marketer, Oando Plc will today be listed on the JSE Securities and Exchange Limited in Johannesburg, South Africa, in a bid to raise capital to fund its expansion plans.
Oando Plc, which only recently clinched the quoted company of the year award of the Nigerian Stock Exchange's Annual President Award, had applied for a secondary listing on the JSE and would become the first Nigerian company to be listed on the JSE.
Oando said that the funds to be raised from the listing would be used in financing its proposed refinery operations, which included a Greenfield refinery project planned to be sited in Lekki area of Lagos, as well as its bid for a controlling stake in the Port Harcourt refinery.
About four percent of the shares in issue of Oando, would initially be offered on the JSE, while the figure is expected to rise to about 10 percent within a few months.
Officials also said that between 25 percent and 50 percent of Oando's total shares in issue would be held by institutions buying through the JSE within 10 years.
Impressed by the profile of Oando, the JSE last week granted approval for the application for a listing of all the issued ordinary shares of Oando in the Resources - Oil and Gas sector of the JSE list under the abbreviated name ‘Oando' with effect from the commencement of trade on the JSE today.
Oando said further that the main purposes of the listing on the JSE are to enhance South African investors' awareness of Oando, thereby enlarging Oando's potential investor base and increasing trade in its shares, provide Oando with an additional source from which capital to facilitate growth can be obtained, facilitate direct investment in Oando by South African residents, broaden the potential for pan-African investment growth and enhance Oando's profile in the global capital markets with the attendant associated benefits.