Slide four. Customer numbers were up 19% with the particularly strong performance in Africa. Total revenue growth of 14% reflects good customer growth, increase in stability and local currency ARPU and some currency benefit in South America. EBITDA growth continues to outfit revenue growth as margin improve and as you will see from our statement we are increasing our EBITDA margin guidance for 2010 to around 40% – 47% from previous mid-forties.CapEx of hundred and $129 million was up 14% – was 14% of revenues and continues to run below our expected rates for the full year. This has boosted our operating free cash flow H1 but CapEx will be higher in H2 as planned. Slide five, despite volatility from one quarter to the next driven by promotional activity, SIM registration and normal seasonality our customer intake continues to demonstrate a stable trend on rolling average basis. Q2 benefited from the impact of registration most of them in Africa but we expect registration to create headwinds in H2, however we do not anticipate an impact on revenue trends as this typically affects low ARPU customers Slide six, local currency ARPU declined – decline continued to slow as a result of our focus on higher quality customers and developing of non-voice revenue streams. In South America we achieved a 2% growth in local currency ARPU, the first such performance in any region since we started (inaudible) part of the decline in blended group ARPU continues to be down to regional mix impact with lower ARPU Africa growing strongly and the full year effects of new taxes and interconnect costs. Slide seven. Breaking down revenue growth into its component parts; we maintained our double-digit rate of revenue growth achieved in Q1. This has been driven by market share gains ARPU management and customer growth. We enjoyed a small benefit from our – from currency movement in Q2 although the euro and Tanzania shilling in particular were much weaker towards the end of the quarter.
Slide eight. Voice revenue growth picked up in the quarter growing to 7% year-on-year in Q2 from 5% in Q1, VAS growth continued to be strong although the rate of growth was a little slower than in recent quarters. Breaking down VAS in more detail; we grew non-SMS VAS, in other words more sophisticated and differentiated services at 50% in local currency showing our commitment to innovation. SMS continues to be an important driver to (inaudible) highly effective way of introducing customers to a range of new non-voice services.Slide nine. VAS now represents 22% of total voice and VAS revenues delivering a more defendable and higher margin revenue stream that generates greater customer interest and loyalty. Non-SMS services have increased from 8% to 12% over the last 12 months. Slide 10. 3G continues to be a real success story for our Latin American business. 3G revenues already represent nearly 5% of all recurring revenues in Latin America just 18 months after launch. We have 1.3 million customers using 3G services and this base grew 25% in the last quarter alone. In addition, currently only 62% of customers own a 3G handset are actually using them for data services. So there is an immediate opportunity to increase penetration of usage within this base. Slide 11. Our market share overall continued to increase during the quarter even with the inclusion of Rwanda in the calculation for the first time. Excluding Rwanda our average market share exceeded 30% for the first time. Slide 12. Churn in percentage terms continued to show a very stable trend demonstrating that we have a strong and consistent proposition whatever the competitive intensity of different markets. Slide 14. We turn to the regional clusters for a brief look at each (inaudible) growth in Central America continues to be hard to come by with weak economies, highly penetrated voice markets and full-year impact of taxes and interconnect costs. While we made further good progress in Guatemala, we saw our customer bases decline in El Salvador and Honduras. In both markets we are focused on attracting and retaining higher quality customers. Margins improved further reflecting stable gross margin by the more disciplined approach to sales and marketing costs. Read the rest of this transcript for free on seekingalpha.com