MTN GROUP LIMITED -
MTN Group Limited
formerly M-Cell limited
(Incorporated in the Republic of South Africa)
(Registration number 1994/009584/06)
Share code MTN
ISIN ZAE000042164
Preliminary reviewed results for the year ended 31 March 2003
Revenue increased by 56%
EBITDA increased by 71%
Adjusted headline earnings per share increased by 97%
Total number of subscribers increased by 41%
Review of results
The MTN Group is pleased to report a 97% increase in adjusted headline earnings
per share ("Adjusted HEPS") to 142,8 cents for the financial year ended 31 March
2003.
The Group"s consolidated revenue increased by 56% to R19 405 million compared to
last year. Earnings before interest, tax, depreciation and amortisation
("EBITDA") grew 71% to R6 217 million, while Adjusted HEPS increased by 97% to
142,8 cents. During the past financial year, both MTN Cameroon Limited
("MTNCameroon") and MTN Nigeria Communications Limited ("MTN Nigeria") were
profitable after tax and contributed R81 million and R911 million respectively,
to the Group"s adjusted headline earnings.
In line with its set objective of diversifying its income sources, the Group now
derives 36% of its revenue, 46% of its EBITDA, and 38% of its adjusted headline
earnings from its non-South African operations. As a result of this
diversification the Group"s earnings are and will be increasingly impacted by
currency fluctuations.
An overall EBITDA margin of 32,0% for the Group was recorded which compares
favourably to last years 29,2%. The Group"s international operations recorded an
overall EBITDA margin of 40,8%. MTN South Africa, which comprises Mobile
Telephone Networks (Proprietary) Limited ("MTN") and MTN Service Provider
(Proprietary) Limited ("MTN SP") (together "MTN South Africa") recorded an
EBITDA margin of 27,6% for the year. This decline was primarily as a result of
increased subscriber acquisition costs, as well as increased interconnect costs.
Net finance costs for the Group increased by 164% to R833 million compared to
last year"s R316 million. This was primarily a result of increased borrowings by
MTN Nigeria, which had raised financing facilities during the previous period
and utilised these funds for network expansion in the current period.
The Group"s tax rate, excluding goodwill amortisation charges, declined to
19,6%. This was mainly due to MTNNigeria"s pioneer status (tax holiday) coupled
with its deferred tax asset raised in accordance with AC102.
Adjusted HEPS increased by 97% to 142,8 cents. MTN South Africa contributed 90,2
cents, a 1% increase on last year, while MTN International, which comprises the
Group"s non-South African operations, increased its contribution to 54,4 cents,
compared to a loss of 15,8 cents last year.
The Group"s total assets increased by 3% to R28 156 million from 31 March 2002.
Due to the strengthening of the Rand during the year from R11,4 to R7,9 to the
US$ at 31 March 2003, foreign currency translation reserves were reduced by a
total of R930 million.
Aided by the strengthening Rand, long-term liabilities reduced by 39% to R3235
million, while short-term borrowings, including overdrafts, increased from R478
million to R1600 million, primarily due to commercial paper borrowings by MTN
Nigeria against its short-term locally raised facility.
Total net debt for the Group deducting cash of R1 542 million and security
deposits of R586 million, has decreased by 36% to R2 707 million from R4 208
million last year. Approximately R1 billion of the decrease was due to the
strengthening of the Rand, the balance being strong cash flows from operations.
As a result, the Group"s gearing ratio, being interest-bearing net borrowings as
a percentage of total equity adjusted for capitalised goodwill decreased to 35%
from 71% last year.
The Group"s net off-shore US$ borrowings in MTN International (Mauritius)
Limited ("MTN Mauritius"), raised to finance the initial capital investments in
Nigeria, were US$204 million at the year-end. The debt in MTN Mauritius is
partly hedged by a sinking fund policy taken out in October 2002. The net
unhedged position has been reduced to US$157 million. The total cost including
foreign exchange losses due to the strengthening of the Rand on this investment
amounted to R125 million. Management continues to pursue every effort to reduce
this exposure in line with the South African Reserve Bank ("SARB") regulations.
Subsequent to year-end, permission was received from the SARB to repay US$20,5
million, and following the announcement by the Minister of Finance of the
further liberalisation of exchange control, the Group has obtained permission to
externalise in the region of R900 million for network expansion within its
Nigeria operations.
The following significant matters had an impact on the results:
As prescribed by South African Statement of Generally Accepted Accounting
Practice AC102, a deferred tax asset has been raised as a result of deductible
temporary differences within the Group"s Nigerian operations, which turned
profitable during the year. This enhanced MTN Group"s basic headline earnings by
R128 million for the current financial year. The actual economic benefit to be
derived from this deferred tax asset is uncertain as it will only be realised
once MTN Nigeria emerges from the five year tax holiday period granted to it
under the "pioneer status" legislation. Current accounting standards do not
permit the discounting of such assets to take cognisance of timing and currency
uncertainties. As a result, the board of directors has taken a decision to
report, in addition to basic headline earnings, adjusted headline earnings that
exclude the effect of the deferred tax asset, as it does not consider the
unadjusted basic headline earnings a fair representation of the results for the
year. Further details on the financial results had the deferred tax asset not
been raised, are provided in the notes to the financial statements.
The Group disposed of a 30% interest in MTN Cameroon to Broadband Telecom, a
Cameroonian partner/shareholder group, in compliance with Cameroonian licence
obligations, for a consideration of US$29,8 million on loan account effective in
April 2002.
A change in accounting policy was implemented to bring the Group"s treatment of
connection incentives in line with international best practice. Connection
incentives are no longer capitalised and amortised over 12 months, but are
expensed in the period in which they occur. Prior period comparatives have been
appropriately restated. Details in this regard are given in the notes to the
financials.
Operational report
A total of 6,7 million capable subscribers were recorded in MTN Group"s managed
operations, an increase of 41% since March 2002, with 6,1 million of these
directly attributable to the MTN Group calculated on equity ownership.
MTN SOUTH AFRICA
MTN South Africa experienced a challenging year. Although revenue increased by
23% to R12 298 million, EBITDA grew by a modest 6% to R3 389 million with EBITDA
margin declining from 32,0% to 27,6%. This reduction was primarily due to
competitive trading conditions and aggressive acquisition strategies in the post
paid market which resulted in increased subscriber acquisition costs in the form
of handset and subscription subsidies. MTN"s post-paid subscriber base increased
by a net 123 000 subscribers as a result.
Overall, capable subscriber numbers increased steadily, with a growth of 22% to
4 723 000. This consisted of 975 000 post-paid subscribers, an increase of 14%
year on year, and 3 748 000 pre-paid subscribers, reflecting a year on year
increase of 24%. The healthy subscriber growth in both segments can be
attributed to several new product launches as well as very competitive pricing
options during the year. MTN South Africa re-launched its pre-paid offering with
several new tariff plans including MTN PayBack, a regressive pricing plan, aimed
at enhancing subscriber loyalty.
Blended Average Revenue per User ("ARPU") per month of R206 was recorded for the
year. This decline of 2%, compared to half year numbers, and 1% to last year,
was primarily due to the shift in subscriber mix towards the pre-paid segment,
which constitutes approximately 79,4% of MTN South Africa"s subscriber base.
ARPU for post-paid subscribers continued to increase and was recorded at R607,
with pre-paid ARPU declining by 4% to R101 since March 2002.
MTN was the first South African operator to market General Packet Radio Services
("GPRS"), branded as MTNdataLive. At year-end, approximately 30 000 active GPRS
users were recorded on the network. Total data revenue now contributes 3,3% to
MTN South Africa"s revenue.
Subsequent to year-end, the Minister of Communications announced the terms and
conditions in respect of access to 1800Mhz frequency. MTN welcomes the
Minister"s announcement as both constructive and positive, and believes the
respective frequency and radio licence fees, as well as the prescribed universal
service obligations, to be fair and equitable.
MTN INTERNATIONAL
MTN International"s operations continue to perform above expectations. All
operations provided a positive contribution to profit after tax of R1194 million
(adjusted for the deferred tax asset in Nigeria).
MTN Cameroon achieved a positive turn-around from March 2002. Under the new
management team, which began managing the operations in June 2002, revenue
increased by 94% to R874 million while EBITDA increased by 254% to R297 million.
An EBITDA margin of 34,0% and a profit after tax of R102 million were recorded.
MTN Cameroon, with a subscriber base of 431 000 as at 31 March 2003, has an
estimated market share of 54%. ARPU levels eased to US$21 from US$24.
MTN Nigeria recorded a strong set of results for its first full year of
operation. Revenue increased from R1 316 million to R5 361 million year on year,
generating EBITDA of R2 088 million and a R1 146 million profit after tax, not
taking into account the deferred tax asset raised in accordance with AC102. With
an estimated market share of 59%, MTN Nigeria has become an integral part of the
socio-economic environment in Nigeria. Subscriber numbers increased from 327 000
as at 31 March 2002 to 1 037 000 as at 31 March 2003. ARPU of US$57 was
achieved. Due to the high demand for mobile communication services, MTN
Nigeria"s network experienced high congestion rates resulting in lower network
quality. As a result, the sale of pre-paid packages was initially slowed through
increased connection fees, and subsequently through a reduction in the sale of
pre-paid packages to allow the network roll-out to catch up with subscriber
demand. In January 2003, "Y"helloBahn", a 3 400 km microwave backbone, was
launched to increase transmission quality and availability on the network. As at
31 March 2003, some 40 cities and 100 smaller towns and communities have been
connected to the network through Y"helloBahn. Geographic coverage of the country
is estimated at 14%, while population coverage has reached an estimated 38%. A
key area of focus is to increase network capacity and to prepare for the entry
of an additional fixed/mobile competitor. Despite this strong performance by MTN
Nigeria to date, significant additional capital expenditures and investments are
still required. For this purpose, MTN Nigeria is currently in the process of
raising project finance facilities of approximately US$380 million.
Subsequent to year-end, President Olusegun Obasanjo was re-elected to office.
This is expected to provide continuity to the economic development of the
country.
MTN Uganda continues to deliver strong results despite intensifying competition.
With a mobile market share of 71%, subscriber numbers increased to 363 000, a
64% increase since March 2002, while ARPU levels declined to US$28 from US$37.
MTN Rwandacell and MTN Swaziland performed in line with expectations recording
subscriber numbers of 105 000 - a 52% increase, and 68 000 - a 24% increase,
respectively.
Despite this strong set of results, the Group"s international operations
continue to monitor factors such as regulatory issues, currency fluctuations and
interconnect receivable collection which are addressed with the assistance of
the respective local strategic partners.
STRATEGIC INVESTMENTS
This division comprises Orbicom (Proprietary) Limited ("Orbicom"), MTN Network
Solutions (Proprietary) Limited ("MTN NS") and Airborn. Orbicom"s core satellite
signal distribution business remained steady. The Electronic Funds Transfer
("EFT") operation in Ghana has performed below expectations, and alternative
strategies are currently being explored. MTN NS completed its core national
network roll-out during the financial year ended 31 March 2003 as well as the
construction of a new commercial hosting facility in Rosebank.
Prospects
Assuming current market conditions continue, the Board is confident that the
Group"s operations will show satisfactory earnings growth in the year ahead. MTN
South Africa is projected to grow their contribution to subscriber and earnings
growth. The international operations are expected to maintain strong positive
cash flows. In the face of a maturing local market, management is implementing
strategies to optimise performance. The Group is exploring value enhancing
activities, in line with its vision of becoming the leading provider of
communication services on the continent.
Directorate
Subsequent to year end, an announcement was made that Ms Santie Botha will join
the MTN Group board in the capacity of Executive Director: Marketing, with
effect from 7 July 2003.
Dividend
The directors believe that it is in the best interest of shareholders to
reinvest retained earnings in the expansion of the operations and reduction of
borrowing levels where appropriate. Accordingly, no final dividend is proposed.
Taking the strong cash generation of the South African operations and the
reducing debt levels into consideration, the dividend policy will be regularly
reviewed to ensure optimisation of shareholder value.
Shareholder matters
During the period under review, Transnet Limited, through Ice Finance BV,
disposed of an approximate 18,7% interest in MTN Group to Newshelf 664
(Proprietary) Limited ("Newshelf"). Newshelf is a special purpose vehicle
established for the benefit of eligible MTN management and staff and is funded
through a long-term six year funding structure involving redeemable preference
shares, participating preference shares and promissory notes. The shares in
Newshelf will be held for the benefit of approximately 2 400 MTN staff. No
financial assistance for the transaction was provided by the eligible MTN Group
and a committee of independent non-executive directors was set-up to consider
the impact of the transaction on the Group. The committee, after having sought
professional advice, concluded that no negative impact on the Group is expected
as a result of this transaction.
In February 2003, Johnnic Holdings Limited ("Johnnic") announced its intention
to unbundle the majority of its 36,5% shareholding in MTN Group to its
shareholders. On 3 June 2003, Johnnic"s shareholders approved the unbundling of
a 31,9% interest in MTN Group. The record date for the unbundling is 20 June
2003.
It is envisaged that the National Empowerment Consortium, which will receive an
estimated 8,8% interest in the MTN Group as a result of the unbundling, will
enter into a voting pool agreement with Newshelf. The free-float of MTN Group
shares, being the shares freely available for trading, will increase accordingly
to an expected 72,5%.
For and on behalf of the Board
M C Ramaphosa P F Nhleko 19 June 2003
(Chairman) (Chief Executive Officer) Sandton
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 or future
events or circumstances or otherwise.
Consolidated income statement
Year ended Year ended*
31 March 2003 31 March 2002
Reviewed Audited %
Rm Rm change
Revenue 19 405 12 432 56
Cost of sales (8 321) (5 081)
Gross profit 11 084 7 351 51
Operating expenses
- net of sundry income (4 867) (3 725)
Earnings before interest,
taxation,depreciation and
amortisation (EBITDA) 6 217 3 626 71
Depreciation (1 651) (1 082)
Amortisation (233) (175)
Profit from operations before
goodwill amortisation 4 333 2 369 83
Goodwill amortisation (596) (592)
Profit from operations 3 737 1 777 110
Finance income 124 131
Finance costs (957) (447)
Share of profits (losses)
of associates 1 (5)
Profit before taxation 2 905 1 456 100
Taxation (687) (908)
Profit after taxation (PAT) 2 218 548 305
Minority interest (289) 44
Attributable earnings 1 929 592 226
Headline earnings
Attributable earnings 1 929 592 226
Less: Non-headline earnings
items
Goodwill amortisation 596 592
Gain on disposal of 20%
shareholding in MTN Cameroon (91) -
Provision against loan arising
on disposal of MTN Cameroon to
reflect net asset value 49 -
Basic headline earnings 2 483 1 184 110
Less: Adjustment
Reversal of deferred tax credit
(see note 10) (128)
Adjusted headline earnings 2 355 1 184 99
Reconciliation of headline
earnings per ordinary
share (cents)
Attributable earnings
per share (cents) 117,0 36,2 223
Effect of goodwill amortisation 36,1 36,3
Effect of disposal of stake
in MTN Cameroon (2,5) -
Basic headline earnings
per share (cents) 150,6 72,5 108
Effect of reversal of deferred
tax credit (see note 10) (7,8)
Adjusted headline earnings
per share (cents) 142,8 72,5 97
Contribution to adjusted
headline earnings per ordinary
share (cents)
Wireless telecommunications
(MTN) 144,6 73,2 98
- South Africa 90,2 89,0 1
- Rest of Africa 54,4 (15,8)
Satellite communications
(Orbicom) (1,8) (0,7)
Adjusted headline earnings
per share (cents) 142,8 72,5 97
Number of ordinary shares
in issue:
- Weighted average (000) 1 648 530 1 632 853
- At period end (000) 1 652 057 1 640 437
* Restated for change in accounting policy for connection incentives (note 11).
Summarised consolidated balance sheet
Year ended Year ended*
31 March 2003 31 March 2002
Reviewed Audited
Rm Rm
ASSETS
Non-current assets 22 842 23 243
Property, plant and equipment 9 374 8 322
Goodwill 10 298 10 803
Intangible assets 2 263 3 685
Investments and loans 734 347
Deferred taxation 173 42
Non-current prepaid tax - 44
Current assets 5 314 4 170
Bank balances, deposits, cash
and amounts receivable on demand 1 542 1 214
Securitised cash deposits ** 586 354
Other current assets 3 186 2 602
Total assets 28 156 27 413
EQUITY AND LIABILITIES
Capital and reserves
Ordinary shareholders" interest 17 063 15 916
Minority interests 882 820
17 945 16 736
Non-current liabilities 4 042 6 202
Long-term liabilities 3 235 5 298
Deferred taxation 807 904
Current liabilities 6 169 4 475
Non-interest bearing liabilities 4 569 3 997
Interest bearing liabilities 1 600 478
Total equity and liabilities 28 156 27 413
Net asset value per ordinary
share (rand)
- Book value 10,33 9,70
Net debt/equity 0,15 0,25
Net debt/equity (excluding goodwill) 0,35 0,71
* Restated for change in accounting policy for connection incentives and
reclassification of letter of credit in MTN Nigeria from other current assets.
** These monies are placed on deposit with banks in Nigeria to secure letters of
credit.
Summarised consolidated cash flow statement
Year ended Year ended*
31 March 2003 31 March 2002
Reviewed Audited
Rm Rm
Cash inflows from operating
activities 5 330 2 755
Cash outflows from investing
activities (4 333) (3 502)
Cash inflows from financing
activities 187 702
Net increase (decrease) in cash
and cash equivalents 1 184 (45)
Cash and cash equivalents at
beginning of period 1 230 804
Reclassification from other
current assets - 354
Foreign entities translation
adjustment (492) 117
Cash and cash equivalents at
end of period 1 922 1 230
* Restated for change in accounting policy for connection incentives (note 11).
Summarised group statement of changes in shareholders" equity
Year ended Year ended
31 March 2003 31 March 2002
Reviewed Audited
Rm Rm
Opening balance at 1 April 15 916 14 767
Change in accounting policy - (53)
Restated opening balance at 1 April 15 916 14 714
Net profit attributable to
ordinary shareholders 1 929 592
Share capital issued at a premium
less share issue expenses 148 349
Share election reserve - (114)
Exchange differences arising on
translation of foreign entities (930) 375
17 063 15 916
Segmental analysis
Year ended Year ended*
31 March 2003 31 March 2002
Reviewed Audited
Rm Rm
REVENUE
Wireless telecommunications (MTN)
- South Africa 12 298 9 982
- Rest of Africa 6 972 2 349
19 270 12 331
Satellite communications (Orbicom) 135 101
19 405 12 432
EBITDA
Wireless telecommunications (MTN)
- South Africa 3 389 3 191
- Rest of Africa 2 842 439
6 231 3 630
Satellite communications (Orbicom) (14) (4)
6 217 3 626
PAT
Wireless telecommunications (MTN)
- South Africa 1 485 1 452
- Rest of Africa 1 355 (303)
2 840 1 149
Satellite communications (Orbicom) (29) (12)
Corporate head office (goodwill) (593) (589)
2 218 548
* Restated for change in accounting policy for connection incentives (note 11).
Notes
1. Basis of accounting
These condensed consolidated preliminary results have been prepared in
accordance with South African Statements of Generally Accepted Accounting
Practice ("GAAP") and Schedule 4 of the South African Companies Act (Act No 61
of 1973), as amended. The accounting policies are consistent with those used in
the annual financial statements for the year ended 31 March 2002, except for the
change in accounting policy relating to the capitalisation and amortisation of
connection incentives which are now recognised as costs in the period incurred
(see note 11).
2. Comparatives
Where necessary, comparative figures have been adjusted to conform with changes
in presentation in the current year.
3. Headline earnings per ordinary share
The calculation of basic and adjusted headline earnings per ordinary share are
based on basic headline earnings of R2483 million (2002: R1184 million) and
adjusted headline earnings of R2355 million (2002: R1184 million) respectively,
and a weighted average of 1648529716 (2002: 1632852938) ordinary shares in
issue. No fully diluted earnings per ordinary share, in respect of debentures
and options convertible into ordinary shares, have been disclosed as the
potential dilution is not considered to be material.
4. Independent review by the auditors
These condensed consolidated preliminary results have been reviewed by our joint
auditors PricewaterhouseCoopers Inc. and SizweNtsaluba vsp Inc., who have
performed their review in accordance with Statements of South African Auditing
Standards applicable to review engagements.
The scope of their review was to enable the joint auditors to report that
nothing came to their attention that caused them to believe that the condensed
consolidated preliminary results need modification so as to fairly present, in
accordance with South African Statements of Generally Accepted Accounting
Practice, in all material respects, the financial position of the Group at 31
March 2003, and the results of its operations, cash flows and changes in equity
for the year then ended.
A copy of their unqualified review report is available for inspection at the
registered office of the Company.
5. Listing requirements
This preliminary announcement has been prepared in compliance with the Listings
Requirements of the JSE Securities Exchange South Africa.
Year ended Year ended
31 March 2003 31 March 2002
Reviewed Audited
Rm Rm
6. Interest bearing liabilities
Call borrowings 206 338
Short-term borrowings 1 394 140
Current liabilities 1 600 478
Long-term liabilities 3 235 5 298
4 835 5 776
7. Capital expenditure incurred 4 235 3 356
8. Contingent liabilities and
commitments
Local currency guarantees
(ZAR equivalent) - 182
Foreign currency guarantees 52 -
Operating leases 1 377 955
Finance leases 316 -
Commitments for capital expenditure
- Contracted 1 144 876
- Authorised but not contracted 5 467 5 791
9. Cash and cash equivalents
Bank balances, deposits and cash 1 542 1 214
Securitised cash deposits 586 354
Call borrowings (206) (338)
1 922 1 230
10. Recognition of deferred tax asset
The Group"s subsidiary in Nigeria has been granted a five-year tax holiday from
commencement of operations. Furthermore, all capital allowances arising during
this five-year period may be carried forward and claimed as deductions against
taxable income from its sixth year of operations onwards. A deferred tax asset
of R128 million relating to these deductible temporary differences has been
recognised as at 31 March 2003 in terms of the strict interpretation of AC102,
which requires a deferred tax asset to be raised where it is probable that
future profits will be generated in order to utilise the deductible temporary
differences.
The Directors have reservations about whether this prescribed accounting
treatment supports the fair presentation of the Group"s results. As with any
enterprise, the Group faces inherent uncertainties in the markets in which it
operates and over which it has little or no control, the effects of which could
negatively impact the future utilisation/realisation of the deferred tax asset
in question. AC102 does not permit deferred tax balances to be discounted.
Therefore, neither the time value of money, nor any future currency movements
may be factored into measuring the deferred tax asset. The Directors question
the appropriateness of this prohibition given the considerable amount of time
between recognition and realisation of this deferred tax asset. The effect of
raising this deferred tax asset is to enhance earnings in the first five years
of operation, against an asset which only realises in periods beyond the
foreseeable future.
The Directors have therefore excluded the effect of this deferred tax asset in
calculating adjusted headline earnings, in order to aid the fair presentation
and interpretation of the results to 31 March 2003. The Directors intend to make
representations to the International Financial Reporting Standards Board in the
near future in an effort to address this perceived anomaly in accounting
standards, and intend to re-visit this accounting treatment, pending the outcome
of those representations.
11. Change in accounting policy
The Group changed its accounting policy with respect to the treatment of
capitalisation and amorisation of connection incentives over 12 months. In order
to align itself with international industry practice, the Group now recognises
connection incentives as costs in the period incurred rather than capitalising
connection incentives and amortising the cost over 12 months. The comparative
amounts have been appropriately restated. The effect of the change is as
follows:
Year ended Year ended
31 March 2003 31 March 2002
Reviewed Audited
Rm Rm
(Decrease) increase in profit
after tax (63) 19
(Decrease) increase in profit
before tax (90) 27
Taxation 27 (8)
Decrease in opening accumulated
profits (34) (53)
Gross (48) (75)
Taxation 14 22
The change in accounting policy has no effect on the minority interests.
12. Changes in shareholding of subsidiaries
Disposal of 30% shareholding in MTN Cameroon
In April 2002, MTN Mauritius sold 30% of its holding in MTN Cameroon, on loan
account, to Broadband Telecom Limited, a company incorporated in Cameroon, in
compliance with licence obligations. The results of MTN Cameroon are
consolidated into the group financial statements. However, in terms of certain
conditions of the disposal agreement, 80% of MTN Cameroon"s economic risk still
vests with the Group and therefore the condensed consolidated preliminary
results include 80% of the results of MTN Cameroon.
Increase in shareholding in MTN Nigeria
During the period the Group increased its shareholding in MTN Nigeria from 77,5%
to 79,5% as a result of further capital provided to MTN Nigeria.
13. Implementation of Accounting Standard AC133 - Financial Instruments:
Recognition and Measurement
Preparations have been made to implement AC133 with effect from 1 April 2003.
The adjustment required to accumulated profit and other reserves at that date is
a charge of R15,3 million. The Group will first report to shareholders under
AC133 in respect of its interim results to 30 September 2003.
Registration number:1994/009584/06 ISIN code: ZAE 0000 4264
Share code: MTN Directorate: M C Ramaphosa (Chairman),
P F Nhleko* (CEO), D D B Band, I Charnley*, Z N A Cindi,
R S Dabengwa*, P L Heinamann, S N Mabaso, R D Nisbet*,
A F van Biljon, P L Zim*, J R D Modise (alternate), L C Webb (alternate)
*Executive Company Secretary: Ms M M R Mackintosh
3 Alice Lane, Sandown Extension 38, Sandton, 2196 Private Bag 9955, Sandton,
2146 Registered office: 3 Alice Lane, Sandown Extension 38, Sandton, 2196
American Depository Receipt (ADR) programme: Cusip No. 55271U109 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 Limited (Registration number: 1958/003546/06)
70 Marshall Street, Johannesburg, 2001 PO Box 61051, Marshalltown, 2107 Joint
auditors: PricewaterhouseCoopers Inc., 2 Eglin Road, Sunninghill, 2157 Private
Bag X36, Sunninghill, 2157 and SizweNtsaluba vsp Inc., 1 Woodmead Drive,
Woodmead Estate,
PO Box 2939, Saxonwold, 2132 E-mail: investor_relations@mtn.co.za
These results can be viewed on the Group"s website at http://www.mtngroup.com
Date: 19/06/2003 05:01:43 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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