MTN Group’s 2016 H1 results show a huge increase in data revenues compared to voice

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MTN has today unveiled its H1 financials for 2016, the Group’s results are presented on a regional basis in line with the Group’s new operational structure. This is geographically comprised of South and East Africa (SEA), West and Central Africa (WECA) and Middle East and North Africa (MENA). In a snapshot, data revenues have grown by 135.3% compared to 7.9% for voice traffic showing a huge demand for data.  Data revenues increased by $1,449.2 million (R19 849 million), and $ 5758.99 million in total revenue.

You can have a look at  full financials for the for the six months ended 30 June 2016 below

  1. Group subscribers remained flat at 232,6 million from 31 December 2015
  2. Revenue increased by 14,0% (1,5%*) to R78 878 million
  3. Data revenue increased by 32,2% (19,7%*) to R19 849 million
  4. Voice traffic and data traffic increased by 7,9% and 135,3% respectively
  5. EBITDA decreased by 3,3% (25,9%*) to R29 273 million
  6. EBITDA margin decreased 6,6 percentage points to 37,1%
  7. Headline loss per share of 271 cents**
  8. Interim dividend of 250 cents per share
  9. Capex increased by 26,9% (15,4%*) to R13 772 million
  10. Nigeria regulatory fine re-measurement impact of R10,5 billion

The company has continued to operate in a challenging environment for the six months ended 30 June 2016. The financial performance for the period reflects the confluence of a number of material issues, which created the “perfect storm”. MTN has made strides towards resolving these challenges although many of these factors fall outside of its control.

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The Group’s reported results were significantly impacted by the Nigerian regulatory fine. On 10 June MTN Nigeria resolved this matter with the Federal Government of Nigeria (FGN) and agreed to pay the FGN a total cash amount of 330 billion Nigerian naira (US$1,671 billion, using the exchange rate prevailing at the time) over three years in a full and final settlement. This was agreed in addition to complying with certain other regulatory conditions imposed as part of the settlement reached. The 50 billion naira (US$250 million) paid in good faith and without prejudice by MTN Nigeria on 24 February 2016 forms part of the monetary component of the settlement, leaving a balance of 280 billion naira (US$1,418 billion, using the exchange rate prevailing at the time) outstanding. In June 2016 the first scheduled payment of 30 billion naira (US$124 million) was made. The remaining cash payable at 30 June 2016 amounted to 250 billion naira (US$882 million).