Local market undervalues MTN's shares

MTN released what can only be described as powerhouse results yesterday. Profit was up 20%, customers were up 22%, and margins were up and are now close to the 45% ebitda (earnings before interest, tax, depreciation and amortisation) target, making the company one of the most profitable on the JSE. Consultancy Bain & Company is quoted by Thomson Reuters saying in a report last week that 68% of Africa's population will have cellphones in 2014, compared with 45% in 2009.