South African mobile phone operator MTN has reported a 44% increase in net profit to ZAR 15.3bn ($1.5bn) for the year 2008, on revenue up 40% at ZAR 102.5bn ($10bn). It attributed the figures to an increase in subscriber numbers, favorable currency movement, and increased investment in infrastructure.
The company said the depreciation of the rand against the US dollar affected its net trading results by approximately 15%. EBITDA increased 36% to ZAR 43.2bn ($4.2bn). Cash flow from operations increased 31% to ZAR 44.8bn ($4.4bn).
During the year the company expanded its subscriber base by 48% to 90.7m, driven by the addition of 10 million subscribers at MTN Irancell and 6.6 million at MTN Nigeria.
Phuthuma Nhleko, chief executive at MTN, said: Mobile telecommunications is an essential service in countries that have low fixed-line or poor fixed-line penetration. We are of the view that opportunities will present themselves and there will be consolidation in the market. This is a business that will always be driven by economies of scale.
Looking ahead, the company is targeting an additional 22.6 million customers by the end of 2009.
