MTN eyes 25 pct growth in mobile phone customers

By Gugulakhe Lourie

JOHANNESBURG (Reuters) - MTN, Africa's biggest mobile operator by subscribers, aims to increase customers by a quarter this year and is eyeing acquisitions as demand in Nigeria and Iran helps it defy a global slowdown.

MTN, which operates mobile phone networks across Africa and the Middle East, on Thursday reported a 33 percent rise in 2008 adjusted headline EPS to 904.4 cents, at the top end of its own forecast, and said it was cautiously optimistic about 2009.

It increased subscribers by 48 percent to 90.7 million -- slightly slower growth than in 2007 -- due to strong growth in Nigeria and Iran and said it expected to add 22.6 million customers by the end of the year.

"I think these subscriber numbers are sustainable for at least two years or more," Chief Executive Phuthuma Nhleko said.

MTN shares gained 1.8 percent to 93.65 rand by 1531 GMT, outpacing a 0.3 percent higher Johannesburg Top 40 index of blue-chip stocks. The stock has lost 28 percent in the past year compared with the Top 40's 40 percent fall.

While the global economic slowdown has hit telecom firms in developed countries, Africa has so far been relatively unscathed by the crisis and consumers are still spending on cell phones while operators seek growth opportunities in new markets.

MTN also said it was buying 17 Musica music stores from South Africa's New Clicks for an undisclosed amount and would use them to sell MTN products as it expands its retail footprint.

MTN, which has aggressively pursued acquisitions and moved rapidly into challenging markets such as Nigeria, Iran and Afghanistan in recent years, said it may take advantage of lower valuations for telecom assets to make more acquisitions, although it stressed prices may still fall further.