Press Releases

MTN releases its annual report

The MTN Group has released its annual report for the year ended 31 December 2005 and this year the Group presents an integrated single report that spans its economic, social and environmental achievements, challenges and targets in one volume.

In 2003, the MTN Group became the first listed telecommunications company in South Africa to publish a sustainability report as part of its annual report, which has been in two volumes – the business report and the sustainability report.

Says Santie Botha, Executive Director, MTN Group: “Triple-bottom line reporting is now firmly embedded in MTN’s annual reporting processes and we felt confident that a single volume report would adequately reflect our economic, social and environmental activities and performance.”

As at 31 December 2005 the Group recorded revenue of R27.2 billion, a 26% increase on the nine months ended December 2004. Since inception in 1994, the MTN Group has invested R32.1 billion in telecommunications infrastructure across its operations on the continent. During the reporting period, MTN invested 6.7 billion in network infrastructure, upgrades, and capacity expansion, providing 3G coverage in South Africa and GPRS and MMS capability in other markets. Capital expenditure is expected to increase to R12.9 billion in 2006. The 23.2 million subscribers reported in the annual report increased to 24.1 million in the quarter ended 31 March 2006.

Maintaining the balance between its financial performance and social responsibility in its operations across the continent is a measured management indicator for the MTN Group.

“MTN is committed to contributing to socio-economic development in the countries where it operates. This commitment is founded in the Group’s goals to achieve profitability and sustained growth. It is in our attainment of profitability that the Group can establish the required mutually beneficial relationships with all stakeholders.”

MTN’s quest to balance social and community policies with sustainable economic and environmental practices against the need to make a healthy return for its shareholders, has resulted in the inclusion of the company on the JSE Socially Responsible Investment (SRI) Index, which recently commenced trading.

The SRI Index is the first of its kind in an emerging market and has its basis on the three pillars of the triple bottom line - economic, environmental and social sustainability - with the principles of corporate governance common to all three elements.

Says Botha: “Our inclusion on the JSE SRI Index firmly locates MTN not only as a powerhouse in the local telecommunications market, but also as a company with a well defined, socially conscious agenda for its operations throughout the continent and in new markets.

Other developments since the reporting period include the announcement in May 2006 that the MTN Group had reached an agreement to acquire Dubai- and London-listed Investcom LLC. The transaction will make the Group one of the world’s largest emerging market players in telecommunications and the leader in Africa and the Middle East, operating mobile networks in 21 countries, covering a population under licence on a combined basis of approximately 488 million people and serving nearly 30 million subscribers.

”Looking ahead, with the Group expanding into additional territories, we face a further challenge of implementing and embedding our sustainability framework into these new operations. We are confident that we will make significant progress in this area in the coming year.”