Basic HEPS increased by 4% to 432.1 cents compared to June 30 2009.
Group revenue decreased by 2.2% to R56 billion while earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 1.1% to R24.2 billion.
Group subscribers were up 11.4% since December 31, 2009 to 129.2 million.
MTN declared a maiden interim dividend of 151 cents per share.
"It is MTN's intention to increase its total annual dividend payout ratio to 40% of the full year's adjusted HEPS," the group said.
It said that the average exchange rate of the rand to the dollar strengthened from R9.06 in the first half of 2009 to R7.52 in the period under review.
"This together with the rand's strength against the basket of currencies in which the group operates has had a dampening effect on the rand reported results."
Capital expenditure for the period of R8.5 billion was R7 billion lower than the comparative period.
The group said capital expenditure peaked in 2009 due to an extensive network expansion and investment strategy undertaken in the previous years.
Net debt levels continued to reduce, ending at R5.2 billion for the period.
The group said that MTN South Africa performed well for the period under review, increasing its subscribers by 6.4% to 17.1 million.
MTN SA revenue increased by 7.1% to R17.1 billion compared to the previous period.
"Market share improved to 36% mainly due to growth in the prepaid segment and a market clean up post Regulation of Interception of Communications and Provision of Communication-Related Information Act (RICA).
The introduction and refinement of various value propositions, including MTN Zone 100% Mahala and One rate calls, resulted in a 6.5% increase in prepaid subscribers to 13.9 million," MTN said.
It said that the negative impact of RICA on the prepaid subscriber base had stabilised, with gross additions increasing by 19.7% compared to earlier.
"The sustained quality and capacity of the network together with improved segmented product offerings enabled MTN Nigeria to increase its subscriber base by 14% to 35.1 million subscribers, MTN said, adding however, that although the group continued to increase its market share, the overall market had slowed as penetration increased to beyond 45%.
MTN ended the period with a market share of over 51%.
Local currency revenue increased by 14.7% for the period, "although this translated into a disappointing 7.7% decline in rand terms to 16.5 billion rand, due to the continued strengthening of the rand and compounded by the relative weakness of the naira when compared to the prior period," MTN said.
It said that network investments for the first half of the year were significantly lower than the prior period and slightly behind the rollout target. MTN Nigeria completed the rollout of 373 2G and 279 3G Base Transceiver Stations (BTS's).
"Maintenance of network quality remains a priority to ensure appropriate levels of quality to the customer," the group said.
The telecoms group said that MTN Ghana delivered a solid operational performance, despite the number of competitors in the market.
"The large capital investment in infrastructure, initiated in 2008, to improve quality and capacity, together with innovative product offerings, enabled MTN Ghana to increase its subscriber base by 9% to 8.7 million for the period and so increased its market share to 56%," MTN said.
Revenue in local currency increased by 19.2% for the period. This translated into a 4.8% decrease in rand terms due to the stronger rand, the group said.
MTN Ghana added 104 2G and 133 3G BTS's for the period, improving network quality and capacity. MTN said that rollout was slower than expected following a ban on new sites by the regulator. "The ban has since been lifted and site rollout is expected to continue on track for the year. Data usage continues to gain momentum with data traffic increasing by 45% for the period."
MTN Irancell recorded strong subscriber growth of 16% to 27 million for the period under review.
Revenue in local currency increased by 42%, although this translated into a 14.7% increase to 9.1 billion in rand terms. MTN's 49% share of MTN Irancell's revenue was 4.5 billion rand for the six month period, it said.
MTN Syria increased its subscriber base by 4% to 4.4 million. Revenue in local currency increased by 12%, although this performance was lower in rand terms, and translated into a 5.0% decrease in rand terms, MTN said.
Looking ahead, MTN said its board would continue to evaluate and consider value accretive opportunities going forward.
"However, due to the limited number of such opportunities, the board is confident that growth aspirations can be accommodated within the imperative of improved short term returns to shareholders."
MTN said it was well positioned in its markets to compete within a changing competitive and regulatory landscape with a focus on cost management as pressure on the revenue line increases. "MTN continues to monitor the economic development of its markets with cautious optimism," it concluded.
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