SI­MON BROWN ON:

Finweek English Edition - - FRONT PAGE -

MTN SA­SOL STEIN­HOFF

MTN’s* re­sults re­vealed that al­most ev­ery­thing is against the com­pany as HEPS was down just over 10% for the six months end­ing June. Much is be­ing made of the po­ten­tial wind­fall from the lift­ing of sanc­tions in Iran, but this re­mains some way off and man­age­ment needs to fo­cus on the cur­rent is­sues. The com­pany has 231m sub­scribers and over R30bn in cash (ad­mit­tedly that cash fig­ure has been fall­ing) – it is also op­er­at­ing in a space (mo­bile) that is with­out doubt a huge part of the fu­ture. The geogra­phies it op­er­ates in have real chal­lenges but the sec­tor in gen­eral and the stock specif­i­cally re­main at­trac­tive, es­pe­cially rel­a­tive to MTN’s global peers. One ex­am­ple is Voda­fone – which ad­mit­tedly op­er­ates in more prof­itable de­vel­oped mar­kets – that has around dou­ble the num­ber of cus­tomers but a mar­ket cap that is some four times larger than that of MTN.

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