MTN Group Releases Subscriber Growth Numbers Across its Markets
South Africa based MTN Group has warned that its subscriber growth has been impacted by price competition and registration regulations. The South African market remains challenging given regulatory and competitive actions.
MTN South Africa showed some progress after a challenging first half but the company also expects conditions to remain challenging for the balance of 2013. The company added 233,000 subscribers bringing the total of subscribers to 25.2 million at the end of the quarter.
Revenue growth declined, (YoY) mainly due to lower effective voice tariffs and slower subscriber growth. Data remains the largest contributor to revenue growth with an increase of 16.6% (YoY). Data users increased to 13.9 million.
MTN Nigeria delivered a satisfactory performance, maintaining market share, in a highly competitive market. Subscribers grew marginally to 55.6 million. This was impacted by the mandatory SIM registration deadline in July 2013, the disconnections in the Borneo state following the shut down of services as well as lower gross connections in the GSM market. The company expects that these factors will continue to impact net additions for the balance of the year.
The key focus during the quarter was on improving network quality and introducing more value added services to customers. The quality and capacity of the network now meet regulatory KPIs allowing MTN to implement promotional products and services, which had been banned by the regulator.
MTN Irancells subscriber base declined by 1.7% to 41.3 million (QoQ). The
slow down in gross connections was due to the weakening economy in a fully
penetrated market and increased promotional activities by the competitor. Local
currency data revenue increased 54.8% (YoY) and now contributes 9.6% of total
revenue. This was mainly driven by improved network quality and attractive data
packages. Local currency ARPU increased by 4,3% assisted by the increase in data
MTN Ghana performed well in a competitive environment maintaining market share. QoQ subscribers increased by 1.4% to 12.8 million subscribers. Net additions in the quarter were impacted by a clean-up of the subscriber base. Local currency data revenue increased 67.3% (YoY) and contributed 8.3% of total revenue and supported the continued double-digit growth in reported revenues.
MTN Cameroon increased its subscriber base 7% to 8.2 million subscribers (QoQ) and maintaining market share. Local currency data revenue increased by 31.8% (YoY), contributing 4.8% to total revenue.
MTN Ivory Coast increased its subscribers by 1.7% to 6.7 million (QoQ). This was mainly due to attractive bonus top up and data promotions. Local currency data revenue increased by 31.9% (YoY) while mobile money gained momentum, increasing 12.1% to 1.3 million subscribers.
MTN Uganda reported strong results, increasing its subscriber base by 4.3% to
8.4 million (QoQ). Local currency data revenue increased by 52.7% (YoY) and now
contributes 18.9% to total revenue.
MTN Sudan's subscriber base decreased marginally in the quarter. This was mainly due to the recently introduced subscriber registration programme, increased competition and a delay in site rollout also impacted subscriber numbers.
MTN Syria continues to operate in an extremely challenging environment. Subscribers increased by 5.1% to 5.8 million and the negative revenue trends appear to have stabalised and the business recorded a 10.3% growth in revenues (QoQ) supported by an increase in tariffs. Security, power outages and insufficient fuel supply remain some of the key challenges. Data revenue increased by 39,0% (YoY) while local currency ARPU increased by 4.8% (QoQ).