Press Releases

Highlights of Results for the 12-month period ended 31 December 2007

Group subscribers up 53% to 61,4 million

Revenue increased 42% to R73,1 billion

EBITDA up 42% to R31,8 billion

Net debt to EBITDA of 0,5%

Adjusted headline EPS of 681,9 cents

Dividend per share of 136 cents

The MTN Group is pleased to announce that it has recorded 61,4 million subscribers across its 21 operations as at 31 December 2007. This is an increase of 53% from 40,1 million subscribers as at 31 December 2006. In addition, the MTN Group has declared a dividend of 136 cents per share, its highest dividend ever.

The former Investcom operations recorded subscriber growth of 66% to 13,9 million, contributing 23% of the Group’s total subscriber base. In the South and East Africa (SEA) region subscribers increased by 23% to 19,3 million. In the West and Central Africa (WECA) region subscribers rose by 43% to 28 million and the Middle East and North Africa (MENA) region recorded a phenomenal 186% increase to 14 million, driven by the very strong growth of MTN Irancell.

OVERVIEW OF RESULTS
The MTN Group’s revenue increased by 42% to R73,1 billion from R51,6 billion recorded at 31 December 2006. Revenue was driven mainly by significant subscriber growth.

The Group’s earnings before tax, interest, depreciation and amortisation (EBITDA) increased by 42% to R 31,8 billion compared to 31 December 2006. This is due to strong revenue growth and initiatives to improve operational efficiencies. The SEA and WECA regions contributed 36% and 52% to Group EBITDA respectively.

Adjusted Headline earnings per share (EPS) of 681,9 cents for the period under review compares favourably with adjusted headline EPS of 584,7 cents for the 12 months ended 31 December 2006.

The average revenue per user (ARPU) marginally declined in most operations, which is consistent with the increased penetration into lower usage segments.

The Group’s taxation charge increased by R5,2 billion to R7,79 billion compared with the 12 months ended 31 December 2006. This relates mostly to the end of the pioneer tax holiday in Nigeria in March 2007.

During 2007, the MTN Group facilitated the increase in equity participation of local shareholders in Uganda to 5%. MTN also decreased its shareholding in Côte d’Ivoire to 60% during the year. The Group is also keen to ensure that, where possible, it holds a controlling interest in all its operations. In light of this, in 2007 the MTN Group increased its shareholding in MTN Rwanda from 40% to 55% and Mascom Botswana from 51% to 53%. The increased shareholding in Botswana did not result in a change in control.

Says MTN Group President and CEO, Mr Phuthuma Nhleko: “I am pleased with yet another satisfactory year across all MTN Group operations. Most of our operations have significantly grown the subscriber base and revenues. This performance reflects the significant opportunities for growth in the Group’s expanded footprint.

“Going forward, we will continue to actively seek value enhancing expansion opportunities in emerging markets, invest heavily in infrastructure and ensure that the Group is well positioned to benefit from the rapidly converging technology market. We will also continue to drive efficiencies and engage with regulatory authorities in the various markets in which we operate.”

OPERATIONAL REVIEW
MTN South Africa performed well in a very competitive market increasing its total subscriber base by 17% on 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 12-month period. Low denomination vouchers have been a key driver in stimulating usage. Market share was maintained at 36% at 31 December 2007.

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 1 379 and 904 000 3G handsets and data cards were in use. Going forward, MTN South Africa is laying its own fibre cable to improve the capacity and quality of mobile transmission and to effectively manage margins.

The MTN data proposition is gaining momentum with a 42% increase in data revenue to R2,8 billion. This is 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. Network capacity and quality were addressed through a ramp-up in infrastructure roll out in the second half of 2007.

Although it remained stronger than expected, 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 44% due to 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, Blackberry© services, Vitrain top-up and Wimax.

At 31 December 2007, 785 additional sites had been added, bringing the total number of live sites to 3 422 and approximately 77 sites have now been integrated with 3G technology. The fibre optic cabling in Lagos Metro (82km) and Niger Delta (342km) was completed in the second half of 2007.

MTN Nigeria was awarded a 15-year 2 GHz spectrum licence on 1 May 2007 for US$150 million for the delivery of 3G services. The operation was also awarded a 7,5 MHz frequency spectrum band licence on 23 March 2007 for N288 000, renewable annually.

The period under review is MTN Irancell’s first full 12 months of operation. During the period, the operation recorded an exceptional performance, increasing subscribers from 154 000 to six million. This equates to an average net acquisition rate of 488 000 subscribers a 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. This was a result of usage-stimulating packages and improvements in the quality and capacity of the network. MTN Irancell was first-to-market in providing GPRS, which has enabled email solutions, MMS, Data SIMS and Vitrain content portal.

Following a slow network 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 500km of road coverage.

MTN Ghana recorded an exceptional increase in subscriber numbers for the period from 2,6 million in December 2006 to four million. This was underpinned by improvements in network coverage and quality and an enhanced competitive proposition. ARPU decreased from US$17 at 31 December 2006 to US$14 at 31 December 2007 due to increased penetration and reduced tariffs.

Network enhancement continued during the review period with the installation of 718 new BTSs, bringing the total to 1 660. At 31 December 2007, geographical coverage was 28% and population coverage was 72%.

MTN Sudan increased its subscriber base by 96% to 2,1 million at 31 December 2007. MTN Sudan increased 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 hindered due to technical challenges experienced during the migration to the new billing system.

ARPU decreased from US$16 at 31 December 2006 to US$12 at 31 December 2007 due to high connections in the lower usage market and the prevalence of dual sim cards. 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 this 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 the coverage in the major cities and providing coverage in the rural and coastal areas. Three hundred and thirty seven BTSs were rolled out in the 12 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. During this year, we expect to grow our subscriber base by around 22 million new subscribers,” concludes Nhleko.

* compared to previous unaudited 12-month period
**Blended ARPU

	31 Dec 2006	31 Dec 2007	31 Dec 06	31 Dec 07
MTN Group Subscribers	(000)	(000)	ARPU (ZAR/USD)	ARPU (ZAR/USD)
South and East Africa
South Africa	12 483	14 781	**R159	**R149
Swaziland	268	380	$20	$18
Botswana	600	874	$19	$15
Zambia	187	262	$19	$10
Uganda	1 595	2 799	$12	$10
Rwanda	384	652	$17	$12
Sub total	15 517	19 329
West and Central Africa
Nigeria	12 281	16 511	$18	$17
Ghana	2 585	4 016	$17	$14
Cameroon	1 783	2 559	$15	$14
Cote d'Ivoire	1 625	2 679	$18	$13
Congo Brazzaville	280	316	$20	$20
Liberia	218	304	$18	$19
Benin	476	652	$21	$12
Guinea Conakry	276	727	$17	$15
Guinea Bissau	98	235	$12	$17
Sub total	19 622	27 999
Middle East and North Africa
Sudan	1 066	2 090	$16	$12
Iran	154	6 006	$9	$10
Afghanistan	218	1 200	$14	$11
Syria	2 237	3 109	$17	$20
Yemen	1 161	1 507	$10	$9
Cyprus	76	113	$35	$39
Sub total	4 912	14 025
TOTAL	40 051	61 354