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MTN GROUP LIMITED - MTN Ghana unaudited financial statements for the nine months ended 30 September 2018

Release Date: 19/10/2018 07:05
Code(s): MTN     PDF:  
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MTN Ghana unaudited financial statements for the nine months ended 30 September 2018

MTN Group Limited
(Incorporated in the Republic of South Africa)
Registration Number 1994/009584/06
Share code: MTN
ISIN: ZAE000042164
("MTN Group" or "the group")


MTN Ghana unaudited financial statements for the nine months ended 30 September 2018

Commentary and forward statement
During the quarter, MTN Ghana delivered a strong performance, driven by solid service revenue 
growth of 22,9%. Data revenue increased by 30,9% YoY while digital revenue expanded by more than 
28%, driven by MoMo, which increased its contribution to revenue to 16%.

MTN Ghana reported an EBITDA margin of 37,6% in the first nine months of the year. This is 
1,3 percentage points lower than the margin in the first nine months of 2017. Excluding the 
impact of the reintroduction of management fees in May 2018, the EBITDA margin would have 
been 40,4%.

Subscriber performance was as follows:
- Subscribers were 19,4 million (17,1 million*)
- Data subscribers were 14,3 million (5,8 million#)
- Mobile money subscribers were 9,4 million (7,9 million*)

MTN Ghana in Q4 will continue to pursue our BRIGHT strategy for 2018 to drive good performance 
and strive towards our vision to lead the delivery of a bold new digital world to customers and to 
make their lives a whole lot brighter.

* Aligned with the MTN Group definition, subscribers are SIMs which generate or participate in 
  an event that generates revenue for the company. Out of bracket numbers conform to the respective 
  regulator subscriber definition.
# Active data subscribers as per MTN Group definition.

Declaration of interim ordinary dividend
Notice is hereby given that a gross interim dividend of GHS0.02 per share for the period 
to 30 September 2018 has been declared. This is subject to deduction of appropriate taxes. 
The number of ordinary shares in issue at the date of this declaration is 12 290 474 360.

Scancom Plc.'s (MTN Ghana) tax reference number is C0003632776. In compliance with the 
requirements of GSE rules, the salient dates relating to the payment of the dividend are 
as follows:
Declaration date                                              Thursday, 18 October 2018
Ex dividend date                                             Wednesday, 7 November 2018
Qualifying date                                                 Friday, 9 November 2018
Closure of register               Monday, 12 November 2018 - Thursday, 15 November 2018
Dividend payment date                                       Wednesday, 21 November 2018

All shareholders registered in the books of MTN Ghana (MTNGH) at the close of business on 
Friday, 9 November 2018 will qualify for the interim dividend.

In view of this the register of shareholders will be closed from Monday, 12 November 2018 to 
Thursday, 15 November 2018 (both dates inclusive).

In view of the foregoing, the ex dividend date has been set as Wednesday, 7 November 2018. 
Consequently, an investor purchasing MTNGH shares before this date will be entitled to the interim 
dividend. However, an investor buying MTNGH shares on or after Wednesday, 7 November 2018 will not 
be entitled to the interim dividend.

On Wednesday, 21 November 2018 the dividend will be transferred electronically to the bank accounts 
or Mobile Money wallets of certificated shareholders who make use of these facilities.

For and behalf of the board

S Adadevoh           M Kadri
CEO                  CFO

18 October 2018


Unaudited statement of comprehensive income
for the period ended 30 September
                                                                              Nine             Nine     
                                                                            months           months    
                                                                             ended            ended    
                                                                            30 Sep           30 Sep    
                                                                              2018             2017    
                                                                            GHS000           GHS000    
Revenue                                                                  3 054 687        2 488 294    
Cost of sales                                                             (425 000)        (366 604)    
Operational cost                                                          (935 444)        (717 818)    
Selling, distribution and marketing expenses                              (544 377)        (435 323)    
EBITDA                                                                   1 149 866          968 549    
Depreciation of property, plant and equipment                             (259 375)        (202 233)    
Amortisation of intangible assets                                          (51 770)         (45 508)    
Operating profit                                                           838 721          720 808    
Net finance income/(costs)                                                   9 001          (22 976)    
Profit before tax                                                          847 722          697 832    
Income tax expense                                                        (247 839)        (202 327)    
Profit after tax                                                           599 883          495 505    
Attributable to:                                                                                       
Equity holders of the company                                              599 883          495 505    
Basic earnings per share                                                    0,0551           0,0461    


Unaudited statement of changes in equity
for the period ended 30 September
                                                                              Nine             Nine     
                                                                            months           months    
                                                                             ended            ended    
                                                                            30 Sep           30 Sep    
                                                                              2018             2017    
                                                                            GHS000           GHS000    
Opening balance at 1 January                                             1 887 051        1 623 869    
Total comprehensive income                                                 599 883          495 505    
Profit after tax                                                           599 883          495 505    

Transactions with owners of the company                                                                
New shares issued                                                        1 066 996                     
Dividend declared                                                       (1 066 996)        (395 000)    
Attributable to equity holders of the company                            2 486 934        1 724 374    
Closing balance at 30 September                                          2 486 934        1 724 374    

Special pre-IPO dividend declaration 
Following the successful completion of the IPO, a gross dividend of GHS1 067 million was declared 
on 31 August 2018 payable to pre-IPO shareholders. As at 30 September 2018, the company was awaiting 
the Bank of Ghana's approval to pay shareholders. On 12 October 2018, the Bank of Ghana granted 
approval for the payment of the aforementioned dividend which subsequently occurred.


Unaudited statement of financial position
as at 30 September                                                  
                                                                              Nine             Nine     
                                                                            months           months    
                                                                             ended            ended    
                                                                            30 Sep           30 Sep    
                                                                              2018             2017    
                                                                            GHS000           GHS000    
Non-current assets                                                       3 019 325        2 456 480    
Property, plant and equipment                                            2 606 086        2 071 164    
Intangible assets                                                          335 237          331 201    
Other non-current assets                                                    78 002           54 115    

Current assets                                                           4 029 707          565 346    
Other current assets                                                        28 698           51 814    
Trade and other receivables                                                562 298          451 518    
Cash and cash equivalents                                                3 438 711           62 014    

Total assets                                                             7 049 032        3 021 826    

Total equity                                                             2 486 934        1 724 374    
Attributable to equity holders of the company                            2 486 934        1 724 374    

Non-current liabilities                                                    618 518          249 988    
Interest-bearing liabilities                                               338 440                -    
Deferred tax and other non-current liabilities                             280 078          249 988    

Current liabilities                                                      3 943 580        1 047 464    
Bank overdraft                                                                   -          109 124    
Trade and other payables                                                 2 876 584          543 340    
Dividend payable                                                         1 066 996          395 000    
Total equity and liabilities                                             7 049 032        3 021 826    

Included in cash and cash equivalents and trade payable as at 30 September 2018 are mobile money 
float accounts GHS2 075 million held in trust for the mobile money subscribers (e-wallet).


Unaudited statement of cash flows
for the period ended 30 September
                                                                              Nine             Nine     
                                                                            months           months    
                                                                             ended            ended    
                                                                            30 Sep           30 Sep    
                                                                              2018             2017    
                                                                            GHS000           GHS000    
Net cash generated from operating activities                             2 830 523          672 556    
Cash generated from operations                                           3 049 916          916 641    
Finance income received                                                     15 234            5 576    
Finance cost paid                                                          (23 214)         (15 045)   
Income tax paid                                                           (211 413)        (234 616)   
Net cash used in investing activities                                     (541 440)        (432 035)   

Acquisition of property, plant and equipment                              (492 158)        (373 203)   
Acquisition of intangible assets                                           (40 144)         (57 855)   
Increase in non-current investments                                             50                -    
Movement in other investing activities                                      (9 188)            (977)   

Net cash generated from/(used in) financing activities                     952 898         (419 918)   
Proceeds from borrowings                                                         -          125 483    
Repayment of borrowings                                                          -         (285 064)   
Dividends paid to equity holders of the company                            (92 538)        (275 000)   
Proceeds from IPO                                                        1 066 996                -    
Other financing activities                                                 (21 560)          14 663    

Net increase/(decrease) in cash and cash equivalents                     3 241 981         (179 397)   
Net cash and cash equivalents at the beginning of the year                 196 730          151 671    
Exchange gains/(losses) on cash and cash equivalents                             -          (19 384)   
Net cash and cash equivalents at the end of the year                     3 438 711          (47 110)    

Fairland
19 October 2018

Sponsor
Deutsche Securities (SA) Proprietary Limited


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