CC image courtesy of Public Relations at MTN Yemen1 on Flickr.
South African mobile operator MTN has released its first quarter results, revealing a reduction in its South African subscriber base and an increase in other markets, along with increasing data revenue growth across the board.
The company reported its subscriber base in South Africa was reduced to 24.9 million, a reduction of 825,000 subscribers, attributing the reduction to the disconnection of active but non-revenue generating SIM cards.
The operator has seen increased pressure to remain competitive recently, especially since the Independent Communication Authority of South Africa imposed reviewed asymmetric termination rates.
The company said its 79c per minute and unlimited prepaid bundled price plans were expected to deliver improved subscriber performance in the future.
Nigeria saw an increase in MTN subscribers despite the ban on the sale of SIM cards imposed by the Nigerian Communications Commission (NCC). The company saw its subscriber base increase to 57.2 million despite a decline in market share.
MTN’s operations in Ghana, Cameroon, Ivory Coast and Uganda all saw an increase in subscribers, with Sudan being the only country apart from South Africa to see a decline in customer levels.
MTN attributed the decline in Sudan to “increased competition and a spike in unrest in the southern region of the country”.
Revenue generated from data usage increased substantially across the board. MTN South Africa saw a 13 per cent increase in data revenue, now contributing 23 per cent of the company’s total income.
Nigeria saw data revenue growth increasing 21 per cent year-on-year. According to the company, each customer uses an average of 41 megabytes (MB) per month.
“This was mainly attributable to the growth in 3G enabled devices on the network, which increased to 7,1 million and improved 3G network quality and capacity,: company said.
However, the highest data growth occurred in Sudan, increasing 127.2 per cent, followed by Ghana at 99.8 per cent, Uganda at 67.7 per cent, and Cameroon at 60.6 per cent.
“Data and Mobile Money remain key areas of focus for the Group as traditional voice revenue remains under pressure. We note encouraging growth in data revenues increasing 43.3 per cent year-on-year and contributing 17 per cent of total revenue and a 12 per cent increase in Mobile Money subscribers.
“Cost containment and the execution of our infrastructure sharing strategy, particularly in South Africa, continue to make good progress,” said MTN Group president and chief executive officer (CEO) Sifiso Dabengwa
