MTN - MTN Group Limited - Final audited results fo19 Mar 2008
MTN - MTN Group Limited - Final audited results for the year ended 31 December  
MTN Group Limited                                                               
Registration number: 1994/009584/06                                             
ISIN code: ZAE000042164   Share code: MTN                                       
Final audited results for the year ended 31 December 2007                       
Group subscribers up 53% to 61,4 million from December 2006                     
Revenue increased 42% to R73,1 billion                                          
EBITDA up 42% to R31,8 billion                                                  
Net debt to EBITDA of 0.5x                                                      
Adjusted headline EPS of 681,9 cents                                            
Dividend per share of 136 cents                                                 
REVIEW OF RESULTS                                                               
MTN Group Limited (MTN Group) continued to deliver a solid performance in the   
twelve months to 31 December 2007, driven mainly by mobile subscriber growth    
across all operations.                                                          
The MTN Group reports operational performance by region, namely South and East  
Africa ("SEA"), West and Central Africa ("WECA") and Middle East and North      
Africa ("MENA").                                                                
The Group recorded revenue growth of 42% to R73,1 billion (31 December 2006:    
R51,6 billion). The SEA and WECA regions contributed 43% and 42% respectively of
total Group revenue, and the MENA the remaining 15%. This compares with 52% by  
SEA, 41% by WECA and 7% by MENA at 31 December 2006 and reflects growth from a  
low base and start-ups in the MENA region. The Iran operation contributed 12% of
the total MENA region`s revenue (up from 2% last year). Without the positive    
effect of foreign currencies having strengthened against the Rand, Group revenue
would have been approximately 2% lower.                                         
The Group`s earnings before interest, tax, depreciation and amortisation        
("EBITDA") increased by 42% to R31,8 billion compared with the twelve-month     
period ended 31 December 2006. Without the positive effect of foreign currencies
having strengthened against the Rand, Group EBITDA would have been 3% lower. The
SEA region contributed 36% to Group EBITDA and WECA 52%. The MENA region        
contributed 8% of total Group EBITDA, up 3% from December 2006.                 
Profit after tax ("PAT") decreased to R11,9 billion from R12,1 billion for the  
twelve months to 31 December 2006, owing to increased finance charges and a     
higher tax charge arising mostly from the end of the pioneer tax status of the  
Nigerian operation. Basic headline earnings per share ("HEPS") rose to 584,8    
cents for the period, 4% below the 606,5 cents for the twelve months ended 31   
December 2006.                                                                  
The Group recorded 61,4 million subscribers at 31 December 2007, a 53% increase 
from 40,2 million at 31 December 2006, as penetration rates increased in most   
markets. The former Investcom operations recorded subscriber growth of 66% from 
31 December 2006, to 13,9 million or 23% of the Group`s total subscribers.      
Subscribers in the SEA region increased by 23% to 19,3 million, in the WECA     
region by 43% to 28 million, and the MENA region recorded a 186% increase to 14 
million driven by the very strong growth of Irancell.                           
The average revenue per user ("ARPU") has marginally declined in most           
operations, which is consistent with increased penetration into lower usage     
The Group is supportive of meaningful local shareholder participation. During   
the course of the year, it facilitated the increase in equity participation of  
local shareholders in Uganda to 5%. MTN also decreased its shareholding in Cote 
d`Ivoire to 60% during the year. The Group is also keen to ensure that, where   
possible, it holds a controlling interest in its operations. Accordingly, during
the course of the year, the Group increased its shareholding in MTN Rwanda from 
40% to 55% and Mascom Botswana from 51% to 53%. The increase in Botswana did not
result in a change in control.                                                  
M A Ramphele and P L Woicke resigned their positions as directors with effect   
from 18 March 2008. The Board greatly appreciates their contribution to the     
achievements of the Group.                                                      
In February 2008 Moody`s upgraded MTN`s national scale rating to from and affirmed the global scale issuer rating at Baa3. The outlook on the   
ratings was changed to positive.                                                
Income statement analysis                                                       
Group consolidated revenue increased by 42% to R73,1 billion (31 December 2006: 
R51,6 billion) largely owing to strong subscriber growth.                       
The increase in revenue was mainly driven by South Africa, which increased      
revenue by 15% to R28,2 billion, and Nigeria, which increased revenue by 36% to 
R20,3 billion. Ghana and Syria generated revenues of R4 billion and R4,6 billion
Former Investcom operations increased revenue by 48% to R14,8 billion (31       
December 2006: R10 billion 12 months unaudited). These operations contributed   
R5,3 billion (17%) to WECA revenue and R9,4 billion (88%) to the MENA revenue   
for the period under review.                                                    
Group EBITDA increased by 42% to R31,8 billion (31 December 2006: R22,4 billion)
as a result of strong revenue growth and initiatives to improve operational     
Former Investcom operations generated R6,3 billion of the Group`s total EBITDA  
for the year under review. The Group`s EBITDA increased year on year by 29% to  
R25,1 billion, excluding the former Investcom operations. The SEA region`s      
EBITDA increased by 22%, accounting for 36% of the Group`s EBITDA. This was     
driven mostly by EBITDA from South Africa. The WECA region contributed 52% to   
Group EBITDA, up 1% from 31 December 2006. The MENA region contributed 8% to    
Group EBITDA, up 3% from December 2006.                                         
The Group`s EBITDA margin improved marginally to 43,5% compared with 43,4% for  
the twelve months ended 31 December 2006.                                       
The Group depreciation charge increased by R1,7 billion to R6,8 billion for the 
period ended 31 December 2007. R0,8 billion of this amount is attributable to   
the increased investment in the former Investcom operations and a full-year     
application of the depreciation charge compared to six months in the previous   
year. Additional investment, mainly in South Africa, Iran and Nigeria,          
contributed to the remainder. The depreciation related to former Investcom      
operations came to R1,3 billion, with Ghana, Syria and Sudan at R327 million,   
R509 million and R200 million respectively.                                     
Group amortisation of intangible assets increased by R0,9 billion to R2,2       
billion compared with the twelve months to 31 December 2006. The amortisation   
relating to the acquisition of Investcom operations increased by R500 million to
R1,1 billion for the twelve months to 31 December 2007, while Iran contributed a
further R79 million. Nigeria`s amortisation increased by R60 million, mainly as 
a result of the acquisition of a 3 G licence and 7,5 MHz frequency spectrum band
Net finance costs of R3,2 billion were higher by R1,7 billion compared to 31    
December 2006 and related mostly to the full-year impact of financing the       
borrowings related to the Investcom acquisition.                                
The Group`s Board continues to report adjusted headline EPS in addition to basic
headline EPS. The adjustments are in respect of:                                
the impact on earnings due to the Nigerian deferred tax credit, which decreases 
the adjusted headline EPS by 12,0 cents                                         
the IFRS requirement that the Group account for a written put option held by a  
minority shareholder of one of the Group subsidiaries _ which provides them with
the right to require the subsidiary to acquire their shareholding at fair value.
The net impact is an increase in adjusted headline EPS of 19,7 cents.           
The unwinding of a previously reversed deferred tax asset in Nigeria, which     
increased the adjusted headline EPS by 89,4 cents.                              
Adjusted headline EPS of 681,9 cents for the period under review compares       
favourably with adjusted headline EPS of 584,7 cents for the twelve months ended
31 December 2006.                                                               
Group Taxation                                                                  
The Group`s taxation charge increased by R5,2 billion compared with the twelve  
months ended December 2006. This relates mostly to the ending of the pioneer    
status tax holiday in Nigeria in March 2007, resulting in a tax charge of R3,8  
billion in 2007 compared with a tax credit of R0,8 billion in 2006.             
MTN Group`s effective tax rate increased from 17,6% at December 2006 to 39,5% at
December 2007, mainly because of the end of the tax holiday in Nigeria at the   
end of March 2007.                                                              
Balance sheet and cash flow                                                     
The Group`s total assets increased by 19% to R116 billion compared with  R97    
billion at 31 December 2006.                                                    
Property, plant and equipment increased by R8,8 billion from 31 December 2006.  
This included acquisitions of R14,8 billion across the Group - R4,8 billion in  
Nigeria, R2,6 billion in South Africa and R1,5 billion in Iran (MTN`s share     
Goodwill and other tangible assets have decreased by 3% to R38,9 billion, as  a 
result of the exchange-rate movement of the local currencies against the rand on
the translation of Investcom LLC`s goodwill. Intangible assets before           
amortisation increased by R2,1 billion, mainly as a result of the acquisition of
the 3G licence and the 7,5 MHz frequency spectrum band licence awarded to MTN   
Current assets grew by R12,9 billion to R33,5 billion, mainly because of the    
increase in other current assets of R5,4 billion to R15,9 billion and in cash   
balances of R7,5 billion to R17,6 billion. The movement in trade and other      
receivables was driven mainly by Nigeria, which increased by R388 million to    
R519 million (interconnect receivables and prepayments), and South Africa, which
increased by R1,1 billion to R7,1 billion. The increase in the Group`s cash     
balances was after cash outflows of R14,5 billion for capital expenditure, R1,7 
billion for dividends, R91 million additional equity purchased in subsidiaries  
and joint ventures, and R4,2 billion in taxes paid.                             
Of the total interest-bearing liabilities of R34 billion (2006: R33 billion), a 
significant portion was originally used to fund the Investcom transaction via   
Mauritius. This debt includes R5 billion four-year bonds, R1,3 billion eight-   
year bonds, as well as syndicated facilities consisting of two five-year term   
loans of US$750 million and R7 billion each, and a three-year revolving credit  
facility of US$1,25 billion. R5.2 billion of the unproductive debt was repaid   
during 2007, reducing it to R14,9 billion.                                      
Irancell`s debt increased by R1,6 billion to R3,4 billion, primarily as a result
of funding its network rollout and operational and other working capital        
requirements. The company entered into deferred payment facility arrangements   
with Nokia, Ericsson and Huawei for the sole purpose of funding the network     
MTN Nigeria`s debt increased by R1,4 billion to R5 billion, as a result of the  
funding of its network rollout and dividend payments. In October 2007, Nigeria  
signed an unsecured US$ 2 billion medium-term debt fund made up of 80% local    
currency and a 20% US$ portion. Net debt to EBITDA at 31 December 2007 is 0.5 x 
due to significant cash accumulation in Nigeria, Ghana and Syria. The Group`s   
target is to reduce total debt to 0,4 times EBITDA by the end of 2008.          
OPERATIONAL REVIEW                                                              
South Africa? ?                                                                 
MTN South Africa performed well in a very competitive market increasing its     
total subscriber base by 17% from 31 December 2006 to 14,8 million at 31        
December 2007. The postpaid subscriber base grew by 9% to 2,5 million           
subscribers, and the prepaid base increased by a healthy 19% to 12,3 million    
over the twelve-month period. Low-denomination vouchers have been a key driver  
in stimulating usage. Market share was maintained at 36% at 31 December 2007.   
The postpaid segment made a strong recovery in the second six months of 2007,   
through improvements in the channel strategy and customer value proposition.    
Blended ARPU decreased by 9% to R149 at 31 December 2007, from R164 at 31       
December 2006. Prepaid ARPU remained relatively stable, declining marginally to 
R92 from R94 owing to more affordable lower denomination vouchers. Postpaid ARPU
decreased to R396 from R487, because of increased penetration into the lower    
usage segments.                                                                 
Network enhancement during the review period included the commissioning of 371  
2G base transceiver stations ("BTSs") and 590 3G BTSs. At year-end, the total   
number of 3G sites was 1379, and 904 000 3G handsets and data cards were in use.
Looking forward, MTN South Africa is laying its own fibre cable to improve the  
capacity and quality of mobile transmission, and effectively manage margins.    
The second quarter of 2007 saw the launch of the brand revitalisation campaign  
"Go", which has been successful in increasing brand awareness. There have       
been a number of innovative products targeted at different customer segments.   
These include low-denomination vouchers, peak-time usage products,              
BlackberryCopyright-connect on HTC and the FNB bulk sms.                        
The MTN data proposition is gaining momentum, with a 42% increase in            
data revenue to R2,8 billion. This was due to competitive pricing,              
increased 3G roll-out and improved stock management in the channels.            
MTN Nigeria increased its subscriber base by 34% to 16,5 million at             
31 December 2007. This was achieved despite network capacity- and quality       
constraints and strong competition. Network capacity and quality are being      
addressed through a ramp-up in the infrastructure roll-out in the second        
half of 2007.                                                                   
During the period, ARPU declined from US$18 at 31 December 2006 to US$17 at 31  
December 2007, which is consistent with increased penetration into the lower    
segment of the market.                                                          
MTN Nigeria maintained its leading market position, with market share at 43% as 
a result of competitive pricing, strong brand preference and an effective value 
proposition. During the period, a number of products and innovations were       
launched, such as GPRS roaming, Edge, BlackberryCopyright services, Vitrain top-
up and Wimax.                                                                   
By the end of December 2007, 785 additional sites had been added during the     
year, bringing the total number of live sites to 3 422, and approximately 77    
sites have now been integrated with 3G technology. The Lagos Metro (82 km) and  
Niger - Delta (342 km) fibre-optic cabling were completed in the second half of 
The integration and commissioning of IP/MPLS backbone to service corporate      
customers has significantly increased capacity. MTN Nigeria was awarded a 15-   
year 2 GHz spectrum licence on 1 May 2007, at a cost of US$150 million, for the 
delivery of 3G services as well as a 7,5 MHz frequency spectrum band licence on 
23 March 2007, at a cost of N288 000, renewable annually.                       
Irancell soft-launched commercial operations with postpaid services on 21       
October 2006. Prepaid services were launched in January 2007. The period under  
review is the first full twelve months of operation. During the period, Irancell
recorded an exceptional performance, increasing subscribers from 154 000 to 6   
million. This equates to an average net acquisition rate of 488 000 subscribers 
per month. Prepaid subscribers comprise 94% of the subscriber base.             
ARPU increased from US$9 at 31 December 2006 to US$10 at 31 December 2007 as a  
result of usage stimulating packages and improvements in the quality and        
capacity of the network.                                                        
During the period, Irancell increased its brand awareness and launched a number 
of new products, including flat competitive rates and standard per-second       
billing. Irancell was first to market in providing GPRS, which has enabled email
solutions, MMS, Data SIMS and Vitrain content portal.                           
The operation has significantly increased its distribution channels in all 30   
provinces of Iran, with over 4 945 dealers and service centres in 258 cities.   
Following a slow roll-out in 2006, the network has been significantly enhanced  
and had sufficient capacity to service 6,5 million subscribers at 31 December   
2007. There are 2 023 live sites across the 30 provincial capitals in 291       
cities. Geographic coverage is 50%, population coverage is 50% and there is 1   
500 km of road coverage.                                                        
MTN Ghana recorded an exceptional increase in subscriber numbers for the period 
under review, from 2,6 million to 4,0 million. This was underpinned by          
improvements in network coverage and quality and an enhanced competitive        
proposition. The operation was rebranded MTN Ghana in August 2007.              
ARPU decreased from US$17 at 31 December 2006 to US$14 at 31 December 2007, as a
result of increased penetration and reduced tariffs.                            
Network enhancement continued during the review period with the installation of 
718 new BTSs, bringing the total number to 1 660. At 31 December 2007,          
geographical coverage was 28% and population coverage was 72%.                  
MTN Ghana made further progress in increasing accessibility and driving sales   
through the regions. Three major distributors have been added to the network and
the decentralisation of distribution points from head office is progressing     
well. There has also been a significant increase in Electronic Voucher          
Distribution ("EVD") vendors - to 31 451 vendors from 12 808 in December 2006.  
The operation introduced new products and innovations, including GPRS roaming,  
Me2U, International call-back and International Top-Up services, which increased
international call traffic.                                                     
MTN Sudan increased its subscriber base by 96% to 2,1 million at 31 December    
2007 and its market share from 25% to 28% at 31 December 2007, in a highly      
competitive market.                                                             
Subscriber acquisitions in the first quarter of 2007 were slightly lower due to 
technical challenges experienced during the migration to the new billing system.
In June 2007, the Sudan operation was successfully rebranded MTN Sudan.         
A number of products were also launched in the second quarter of 2007, including
a prepaid per-second billing campaign. A number of value-adding initiatives were
launched, ranging from voicemail, postpaid bill inquiry, 3G data card, bulk SMS 
for corporates and prepaid multiprofile.                                        
ARPU decreased from US$16 at 31 December 2006 to US$12 at 31 December 2007,     
because of high connections in the lower usage market and the prevalence of dual
SIMs. MTN Sudan has introduced a segmented pricing offering which will stimulate
usage and support ARPU.                                                         
During the period, the operation rolled out an additional 575 BTS sites.        
Population coverage is 43% and geographical coverage is 3%.                     
MTN Syria delivered stable performance in a high-growth market, recording a 39% 
increase in subscriber numbers to 3,1 million at 31 December 2007.              
Blended ARPUs declined from US$22 at 31 December 2006 to US$20 at 31 December   
2007. Prepaid ARPUs are US$15 and postpaid ARPUs are US$42. This was due to an  
increase in mobile penetration from 26% to 35%.                                 
MTN Syria continued to focus on improving coverage in the major cities and      
providing coverage in rural and coastal areas. 337 BTSs were rolled out in the  
twelve months to 31 December 2007. Population coverage and geographical coverage
stood at around 98% and 78% respectively.                                       
The Group`s prospects for 2008 remain positive in our key markets.              
Strategic priorities include:                                                   
Actively seeking value-accretive expansion opportunities in emerging markets;   
Ongoing infrastructure investment to ensure appropriate levels of capacity and  
Ensuring that the Group is well positioned to benefit from a rapidly converging 
technology market;                                                              
Driving operating margin efficiencies;                                          
Engaging with regulatory authorities.                                           
Dividend declaration                                                            
Due to the Group`s strong free cash flow generation and sound financial         
position, a dividend of 136 cents per share (December 2006: 90 cents per share) 
has been declared.                                                              
Notice is hereby given that a dividend (number 9) of 136 cents per ordinary     
share has been declared and is payable to shareholders recorded in the register 
of the MTN Group at the close of business on Friday, 11 April 2008.             
In compliance with the requirements of Strate, the electronic settlement and    
custody system used by the JSE , the MTN Group has determined the following     
salient dates for the payment of the dividend:                                  
Last day to trade cum dividend               Friday, 4 April 2008               
Shares commence trading ex dividend          Monday, 7 April 2008               
Record date                                  Friday, 11 April 2008              
Payment date of dividend                     Monday, 14 April 2008              
Share certificates may not be dematerialised or rematerialised between Monday, 7
April 2008 and Friday, 11 April 2008, both days inclusive.                      
On Monday, 14 April 2008 the dividend will be electronically transferred to the 
bank accounts of certificated shareholders who make use of this facility. In    
respect of those who do not use this facility, cheques dated Monday, 14 April   
2008 will be posted on or about that date. Shareholders who have dematerialised 
their shares will have their accounts held by their Central Securities          
Depository Participant or broker credited on Monday, 14 April 2008.             
For and on behalf of the Board                                                  
M C Ramaphosa       P F Nhleko                                                  
(Chairman)          (Group President and Chief Executive Officer)               
18 March 2008                                                                   
Certain statements in this announcement that are neither reported financial     
results nor other historical information are forward-looking statements,        
relating to matters such as future earnings, savings, synergies, events, trends,
plans or objectives.                                                            
Undue reliance should not be placed on such statements because they are         
inherently subject to known and unknown risks and uncertainties and can be      
affected by other factors that could cause actual results and company plans and 
objectives to differ materially from those expressed or implied in the forward- 
looking statements (or from past results).                                      
Unfortunately, the company cannot undertake to publicly update or revise any of 
these forward-looking statements, whether to reflect new information of future  
events or circumstances or otherwise                                            
Operational data                          31 December 2007                      
                             Subscribers (`000)      ARPU (ZAR/US$)             
South and East Africa         19 329                                            
South Africa                  14 781                  R149                      
Uganda                        2 362                   $10                       
Botswana                      874                     $15                       
Rwanda                         652                    $12                       
Swaziland                     380                      $18                      
Zambia                        262                     $10                       
West and Central Africa        27 999                                           
Nigeria                        16 511                  $17                      
Ghana                         4 016                   $14                       
Cote d`Ivoire                  2 679                   $13                      
Cameroon                       2 559                  $14                       
Guinea Conakry                 727                     $15                      
Benin                          652                     $12                      
Congo Brazzaville             316                      $20                      
Liberia                        304                     $19                      
Guinea Bissau                  235                     $17                      
Middle East and North Africa   14 025                                           
Iran                           6 006                  $10                       
Syria                         3 109                    $20                      
Sudan                          2 090                   $12                      
Yemen                         1 507                    $9                       
Afghanistan                    1 200                   $11                      
Cyprus                         113                     $39                      
Total MTN                      61 353                                           
Condensed consolidated income statements                                        
                                          12 months    12 months                
                                          ended        ended                    
31 December  31 December              
                                          2007         2006                     
                                          Audited      Audited       Change     
                                          Rm           Rm            %          

Revenue                                     73 145       51 595       42        
Direct network operating costs              (8 525)      (4 628)      84        
Cost of handsets and other accessories      (5 524)      (4 135)      34        
Interconnect and roaming                    (9 997)      (7 178)      39        
Employee benefits and consulting expenses   (3 379)      (2 453)      38        
Selling, distribution and marketing         (9 071)      (7 949)      14        
Other expenses                              (4 804)      (2 839)      69        
Depreciation                                (6 774)      (5 030)      35        
Amortisation of intangible assets           (2 199)      (1 289)      71        
Net finance costs                           (3 173)      (1 427)      122       
Share of results of associates              8            23           (65)      
Profit before tax                           19 707       14 690       34        
Income tax expense                          (7 791)      (2 591)      201       
Profit for the period                       11 916       12 099       (2)       
Attributable to:                                                                
Equity holders of the Company               10 608       10 610       -         
Minority interests                          1 308        1 489        (12)      
11 916       12 099       (2)        
Earnings per share (cents)                 569,9        605,4         (6)       
Diluted earnings per share (cents)         559,2        589,1         (5)       
Dividend per share (cents)                  90,0         65,0                   
Condensed consolidated balance sheets                                           
                                          At          At                        
                                          31 December 31 December               
                                          2007        2006                      
Audited     Audited      Change       
                                          Rm          Rm           %            
Non-current assets                          82 085      76 282      8           
Property, plant and equipment            39 463      30 647      29           
  Goodwill                                 25 744      27 017      (5)          
  Other intangible assets                  13 053      13 088      -            
  Investments in associates                60          73          (18)         
Loan and other non-current recievables   2 433       2 852       (15)         
  Deferred income tax assets               1 332       2 605       (49)         
Current assets                              33 501      20 635      62          
  Cash and cash equivalents                16 868      9 961       69           
Restricted cash*                         739         130         468          
  Other current assets                    15 894       10 544      51           
Total assets                                115 586     96 917      19          
EQUITY AND LIABILITIES                                                          
Shareholders` equity                                                            
  Share capital and reserves               47 315      38 696      22           
  Minority interest                        4 187       4 033       4            
                                           51 502      42 729      21           
Non-current liabilities                     29 114      34 203      (16)        
  Borrowings                               23 007      28 587      (20)         
  Deferred income tax liabilities          2 676       2 778       (4)          
  Other non-current liabilities            3 431       2 838       21           
Current liabilities                         34 970      19 985      76          
  Non-interest bearing liabilities         24 320      15 593      56           
  Interest-bearing liabilities             10 650      4 392       142          
Total equity and liabilities                115 586     96 917      19          
*These monies consist primarily of amounts placed on deposit with banks in      
Nigeria to secure letters of credit.                                            
Condensed consolidated statements of changes in equity                          
                                                  12 months     12 months       
ended         ended           
                                                  31 December   31 December     
                                                  2007          2006            
                                                  Audited       Audited         
Rm            Rm              
Opening balance                                    42 729        23 096         
  Net profit attributable to Equity holders of     10 608        10 610         
the company                                                                     
Dividends paid                                   (3 387)       (2 500)        
  Issue of share capital                           60            9 532          
  Disposal/(Purchase)of non-controlling interests  294           (2 874)        
  Purchase of controlling interests               192           1 187           
Minorities` share of profits and reserves        1 308         1 489          
  Shareholders` revaluation reserve               565            86             
  Share-based payments reserve                     92            36             
  Cash flow hedging reserve                        30            (54)           
Coversion of shareholder loans to preference     (192)        -               
  Currency translation differences                 (797)         2 121          
                                                  51 502        42 729          
Segmental analysis                                                              
                                                 12 months     12 months        
                                                 ended         ended            
                                                 31 December   31 December      
2007          2006             
                                                 Audited       Audited          
                                                 Rm            Rm               
South and East Africa                              31 453        26 586         
West and Central Africa                            30 843        21 208         
Middle East and  North Africa                      10 779        3 756          
Head office companies                             70             45             
73 145        51 595          
South and East Africa                              11 329        9 346          
West and Central Africa                            16 601        11 355         
Middle East and  North Africa                      2 530         1 117          
Head office companies                             1 385          595            
                                                  31 845        22 413          
South and East Africa                             6 155          5 119          
West and Central Africa                           6 529          7 489          
Middle East and  North Africa                     730            182            
Head office companies                             (1 498)        (691)          
11 916        12 099           
Condensed consolidated cash flow statements                                     
                                                 12 months     12 months        
                                                 ended         ended            
31 December   31 December      
                                                 2007          2006             
                                                 Audited       Audited          
                                                 Rm            Rm               
Cash inflows from operating activities             25 850        17 622         
Cash outflows from investing activities            (17 152)      (35 711)       
Cash (out)/in flows from financing activities     (2 135)        18 993         
Net movement in cash and cash equivalents          6 563         904            
Cash and cash equivalents at beginning of period   9 008         7 164          
Effect of exchange rate changes                    (25)          940            
Cash and cash equivalents at end of period        15 546        9 008           
Notes to the condensed consolidated financial statements                        
1. Basis of preparation                                                         
The condensed financial information ("financial information") announcement is   
based on the audited financial statements of the Group for the year ended 31    
December 2007 which have been prepared in accordance with International         
Financial Reporting Standards ("IFRS"), International Accounting Standards 34,  
the Listing Requirements of the JSE Limited and the South Africa Companies Act, 
Act 61 of 1973, as amended, on a consistent basis with that of the prior period.
2. Headline earnings per ordinary share                                         
The calculations of basic and adjusted headline earnings per ordinary share are 
based on basic headline earnings of R10 886 million (December 2006: R10 628     
million) and adjusted headline earnings of R12 693 million (December 2006: R10  
246 million) respectively, and a weighted average of 1 861 454 696 (December    
2006: 1 752 304 867) ordinary shares in issue.                                  
Reconciliation between net profit attributable to the equity holders of the     
Company and headline earnings.                                                  
12 months     12 months       
                                                 ended           ended          
                                                  31 December   31 December     
                                                 2007            2006           
Audited         Audited        
                                                  Rm             Rm             
Net profit attributable to Equity holders of the   10 608         10 610        
Adjusted for:                                                                   
Loss on disposal of property, plant and equipment  61             40            
Impairment/(reversal of impairment) of property,   173            (22)          
plant and equipment                                                             
Other impairments                                  44            -              
Basic headline earnings                            10 886         10 628        
Adjusted for:                                                                   
Reversal of deferred tax asset                     (223)          (650)         
Reversal of the subsequent utilisation of          1 664         -              
deferred tax asset                                                              
Reversal of put option in respect of subsidiary                                 
- Fair value adjustment                            262            120           
- Finance costs                                    210            301           
- Minority share of profits                        (106)          (153)         
Adjusted headline earnings                         12 693         10 246        
Reconciliation of headline earnings per ordinary                                
share (cents)                                                                   
Attributable earnings per share (cents)            569,9          605,4         
Adjusted for:                                                                   
Loss on disposal of property, plant and equipment  3,3            2,3           
Impairment/(reversal of impairment) of property,  9,3             (1,2)         
plant and equipment                                                             
Other impairments                                 2,4            -              
Basic headline earnings per share (cents)         584,8           606,5         
Reversal of deferred tax asset                     (12,0)         (37,1)        
Reversal of the subsequent utilisation of         89,4           -              
deferred tax asset                                                              
Reversal of put option in respect of subsidiary    19,7           15,3          
Adjusted headline earnings per share (cents)       681,9          584,7         
Contribution to adjusted headline earnings per                                  
ordinary share (cents)                                                          
South and East Africa                             329,2           289,5         
West and Central Africa                           410,6           325,8         
Middle East and North Africa                      22,2            2,7           
Head office companies                             (80,1)          (33,3)        
                                                 681,9           584,7          
Number of ordinary shares in issue:                                             
- Weighted average (000)                          1 861 455     1 752 305       
- At period end (000)                              1 864 798     1 860 268      
Adjusted headline earnings adjustments                                          
Deferred tax asset                                                              
The Group`s subsidiary in Nigeria had been granted a five-year tax holiday under
"pioneer status" legislation.                                                   
As previously disclosed, although the Group has complied with the requirements  
of IAS 12 in this regard, no cognisance was taken in determining the value of   
such deferred tax assets for uncertainties arising out of the effects of the    
time value of money or future foreign exchange movements. The Board resolved to 
report adjusted headline earnings (negating the effect of the deferred tax      
asset) in addition to basic headline earnings, to more fully reflect the Group`s
results for that period.                                                        
A deferred tax credit of R223 million (December 2006: R650 million) excluding   
minority interests relating to deductible temporary differences has been        
recognised for the period ended 31 December 2007 in terms of IAS 12 - Income    
On 31 March 2007 MTN Nigeria exited "pioneer status," and from 1 April 2007     
became subject to income tax in Nigeria. A deferred tax asset of R2,5 billion   
was created during "pioneer status" in respect of capital allowances on capital 
assets that are only claimable after the Company comes out of "pioneer status". 
The above has resulted in the commencement of the reversal of the deferred tax  
asset shown as an adjustment of R1,9 billion (R1,7 billion excluding minorities)
to the adjusted headline earnings figure.                                       
Put option in respect of subsidiary                                             
"The implementation of IFRS requires the Group to account for a written put     
option held by a minority shareholder of one of the Group subsidiaries, which   
provides them with the right to require the subsidiary to acquire their         
shareholdings at fair value. Prior to the implementation of IFRS the            
shareholding was treated as a minority shareholder in the subsidiary as all     
risks and rewards associated with these shares, including dividends, currently  
accrues to the minority shareholders.                                           
IAS 32 requires that in the circumstances described in the previous paragraph:  
(a) the present value of the future redemption amount be reclassified from      
equity to financial liabilities and that the financial liability so reclassified
subsequently be measured in accordance with IAS 39;                             
(b) in accordance with IAS 39, all subsequent changes in the fair value of the  
liability together with the related interest charges arising from present       
valuing the future liability be recognised in the income statement; and         
(c)  the minority shareholder holding the put option no longer be regarded as a 
minority shareholder, but rather as a creditor from the date of receiving the   
put option.                                                                     
Although the Group has complied with the requirements of IAS 32 and IAS 39 as   
outlined above, the Board of Directors has reservations about the               
appropriateness of this treatment in view of the fact that:                     
(a) the recording of a liability for the present value of the future strike     
price of the written put option results in the recording of a liability that is 
inconsistent with the Framework, as there is no present obligation for the      
future strike price;                                                            
(b) the shares considered to be subject to the contracts are issued and fully   
paid up, have the same rights as any other issued and fully paid up shares and  
should be treated as such; and                                                  
(c) the written put option meets the definition of a derivative and should      
therefore be accounted for as a derivative in which case the liability and the  
related fair value adjustments recorded through the income statement would not  
be required.                                                                    
3. Independent audit by the auditors                                            
These condensed consolidated results have been audited by our joint auditors    
PricewaterhouseCoopers Inc. and SizweNtsaluba VSP, who have performed their     
audit in accordance with the International Standards on Auditing. A copy of     
their unqualified audit report is available for inspection at the registered    
office of the Company.                                                          
                                                 12 months      12 months       
31 December    31 December     
                                                 2007           2006            
                                                 Audited        Audited         
                                                 Rm              Rm             
4. Capital expenditure incurred                    15 536         9 778         
5. Contingent liabilities and commitments                                       
Contingent liabilities                             957            911           
Operating leases                                   955            837           
Finance leases                                     581            592           
Other                                             373            506            
6. Commitments for property, plant and equipment                                
and intangible assets                                                           
- Contracted for                                   8 671          3 268         
- Authorised but not contracted for                21 910         13 163        
7. Cash and cash equivalents                                                    
Bank balances, deposits and cash                  16 868          9 961         
Call borrowings                                    (1 322)        (953)         
                                                 15 546          9 008          
8. Interest-bearing liabilities                                                 
Call borrowings                                    1 322          953           
Short-term borrowings                              9 328          3 439         
Current liabilities                                10 650         4 392         
Long-term liabilities                              23 007         28 587        
                                                  33 657         32 979         
9. Other non-current liabilities                                                
The put options in respect of subsidiaries arise from arrangements whereby      
minority shareholders of two of the Group`s subsidiaries have the rights to put 
their remaining shareholdings in the subsidiaries to Group companies.           
On initial recognition, these put options were fair-valued using effective      
interest rates as deemed appropriate by management. To the extent that the put  
options are not exercisable at a fixed strike price, the fair value will be     
determined on an annual basis with movements in fair value being recorded in the
profit and loss.                                                                
10. Business combinations                                                       
The acquisition of additional shares in MTN Rwanda                              
In November 2007 the shareholding in MTN Rwanda, a telecommunications company   
incorporated in Rwanda, was increased from 40% to 55%, for US$ 40,5 million,    
converting the joint venture operation into a fully consolidated subsidiary of  
the Group.                                                                      
MTN Rwanda contributed revenues of R305 million and net profit of R101 million  
to the Group. If the step-up had occurred on 1 January 2007, the contribution to
the Group revenue would have been R583 million and the contribution after tax   
would have been R197 million.                                                   
These amounts have been calculated using the Group`s accounting policies.       
Goodwill is attributable to the synergies expected to arise after the Group     
gains control of MTN Rwanda.                                                    
Details of the net assets acquired and goodwill as at acquisition are as        
November 2007                  
Total purchase consideration                      272                           
Fair value of net assets acquired                 (58)                          
Goodwill                                          214                           
The assets and liabilities arising from the                                     
acquisition are as follows:                                                     
Fair value at   Acquiree`s     
                                                 acquisition     carrying       
                                                 date            amount on      
                                                 Rm              Rm             
Cash and cash equivalents                         223             223           
Property, plant and equipment                     254             254           
Intangibles                                       2               2             
Investment in subsidiary                          4               4             
Inventories and receivables                       84              84            
Payables                                          (139)           (139)         
Net deferred tax liability                        (39)            (39)          
Net assets acquired                               389             389           
Minorities                                        (175)                         
Net assets already owned                          (156)                         
Fair value of assets acquired                     58                            
Cash and cash equivalent in subsidiary acquired                   134           
Purchase consideration                                            (272)         
Cash outflow on acquisition                                       (138)         
11. Post-balance sheet events                                                   
Broadening of the Nigerian shareholder base of MTN Nigeria                      
Subsequent to year-end, Nigerian individuals and key institutions have acquired 
a 9,45% interest in MTN Nigeria from MTN, acting through its wholly owned       
subsidiary, MTN International (Mauritius) Limited, and other shareholders in MTN
Nigeria, pursuant to a private placement.                                       
The main rationale for the transaction is to achieve MTN`s stated intention of  
broadening the ownership of MTN Nigeria among Nigerian citizens and             
institutions, and to reaffirm MTN`s commitment of enabling greater Nigerian     
representation in MTN Nigeria.                                                  
MTN disposed of an overall equity interest of 5,96% in MTN Nigeria as part of   
the private placement, for a consideration of US$594,50 million, thereby        
reducing its interest in MTN Nigeria to 76,08%.                                 
The allocation date for the private placement was 8 February 2008 and share     
transfers have been effected on 18 February 2008.                               
Change in tax rate                                                              
On 20 February 2008, the South African Minister of Finance announced a change in
the corporate tax rate from 29% to 28%. This change is effective for financial  
years ending on any date between 1 April 2008 and 31 March 2009.                
M C Ramaphosa (Chairman), P F Nhleko (Group President and CEO)*, R S Dabengwa*, 
R D Nisbet*, D D B Band, K P Kalyan , A T Mikati, M J N Njeke, A H Sharbatly, J 
H N Strydom, A F van Biljon, J van Rooyen                                       
Group Secretary                                                                 
S B Mtshali, 216  14th Avenue, Fairland, 2195.                                  
Private Bag 9955, Cresta, 2118, RSA                                             
Registered office 216  14th Avenue, Fairland, 2195                              
American Depository Receipt (ADR) programme                                     
Cusip No. 62474M108 ADR to ordinary share 1:1.                                  
Depository: The Bank of New York, 101 Barclay Street, New York NY 10286, USA    
Office of the South African registrars                                          
Computershare Investor Services (Proprietary) Limited                           
(Registration number: 2004/003647/07)                                           
PO Box 61051, Marshalltown, 2107                                                
Joint auditors                                                                  
PricewaterhouseCoopers Inc., 2 Eglin Road, Sunninghill, 2157                    
Private Bag X36, Sunninghill, 2157 and SizweNtsaluba VSP                        
20 Morris Street East, Woodmead, 2146                                           
PO Box 2939, Saxonwold, 2132                                                    
Our financial results can be viewed on our website at:              
Date: 19/03/2008 08:00:05 Produced by the JSE SENS Department.                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.