By David Mugabe

The S.African-based MTN Group increased its stake in MTN Uganda from 95% to 97% in October 2009, the telecom giant announced recently as it released its 2009 annual results.

The group’s president and chief executive, Phuthuma Nhleko, who is not renewing his contract when it expires on June 30, said their operations across Africa did well despite the economic challenges, increased regulatory changes and growing competition.

“Continued delivery in accordance with an aggressive network rollout strategy remained key throughout 2009, enabling MTN to maintain or improve its market share in most of its operations,” said Nhleko.

The MTN mobile money transfer service, which was launched in March 2009, was also a success.

MTN Group revenues increased by 9.2% to sh28 trillion. Earnings before interest, tax and depreciation rose by 6.7% to sh12 trillion.

The group explained in the statement that movements in exchange rates in the year, mainly in the South African Rand (ZAR) and Nigerian Naira (NGN), had a substantially negative impact on the Group’s financial results.

“To illustrate this, had there been no change in currency rates during the year, reported revenues at year end would have been 11% points higher,” said the group.
In the same period, subscribers increased by 28% to 116 million for the period under review, indicating a continuing demand for mobile services in countries where mobile penetration is still relatively low.

Meanwhile, Phuthuma Nhleko, will not be renewing his long-term contract as Group president and CEO which ends on 30 June 2010.