TOP STORY: MTN Group profit on 44 percent growth path

MTN authorities said they would raise capital expenditure to $100m in 2009 to counter competition from new players MTN Group profit rose as much as 44 percent in the year to December 2008. Africa’s largest cellphone company said on Friday last week that from the earnings, a share gained at least 39 percent, according to Bloomberg Newswire. The company is scheduled to report full earnings on March 12.
An MTN stand at a recent trade show in Kigali. (File Photo)
An MTN stand at a recent trade show in Kigali. (File Photo)

MTN authorities said they would raise capital expenditure to $100m in 2009 to counter competition from new players

MTN Group profit rose as much as 44 percent in the year to December 2008. Africa’s largest cellphone company said on Friday last week that from the earnings, a share gained at least 39 percent, according to Bloomberg Newswire. The company is scheduled to report full earnings on March 12.

“These numbers look outstanding,” said Bruce Main, a Johannesburg-based fund manager at Ivy Asset Management. Much of the growth in the last year probably came from African countries, excluding South Africa, he said.

MTN said on February 6 that it would spend $1.5 billion (R15.3 billion) to expand its network this year in Nigeria, the fastest-growing network on the continent.

Sub-Saharan Africa “should still be one of the best-performing regions in 2009”, Rand Merchant Bank said in a January 14 report.

In Rwanda MTN authorities at the Nyarutarama office said they would rise capital expenditure to $100m in 2009 to counter competition from new players.

Andrew Rugege, chief operations officer (COO), said recently that capital expenditure for the operations in Rwanda, would rise from $60 million in 2008 to $100 million in 2009 the firm targets the two million subscriber mark.

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