MTN to go on a spending spree
After spending a record R28billion last year, MTN will shrug off the global economic downturn and spend another R37billion this financial year.
Africa's biggest mobile phone operator by subscribers proved that neither rich nor poor people would tire of spending money on their cellular phones with a solid 40percent jump in revenue - it cleared the R100billion mark for the year ended December 31.
The company's chief financial officer Rob Nisbet expressed his confidence in the telecommunications sectors, saying: "Trading conditions have been very tough, but communication is an essential part of everyone's wellbeing."
Chief executive Phuthuma Nhleko said MTN's strong balance sheet, low debt and high market share in its markets justified the increase in capital expenditure for the year ahead.
He said: "This is a business that will be driven by economies of scale. Given the number of competitors coming into the market globally, there will be large consolidation coming into place."
He said the 48percent jump to 90 million subscribers would not have happened were it not for significant infrastructure investment made during the year. - With I-Net Bridge