MTN group data revenue has risen 21% in the nine months ended September 2016, to contribute 26,4% of its total revenue.
During the period, voice traffic increased 1,8% and data traffic was up 142%.
MTN Group executive chairman, Phuthuma Nhleko, comments on the group’s quarterly review: “During the quarter the group embarked on a material transformation project, focusing initially on its key operations of Nigeria and South Africa. A dedicated transformation office was established to drive this transformation to maximise revenue growth, enable a distinct customer experience and ensure operational efficiencies, including concerted initiatives to drive optimal return on investment, with hard targets set for the next 12, 18 and 24 months. Operations are expected to deliver the first results on clearly defined targets in the first half of 2017.
“Over the past 12 months the group has made a number of senior management changes to ensure efficient operational execution, enhance stakeholder engagement, manage reputational risk and ensure solid governance across its operations. The appointment of a new Group Chief Financial Officer as well as the few other outstanding senior management changes and appointments will be concluded by year end.
“Following the announcement of senior management changes made on 20 June 2016 we are pleased to announce that the starting date for new Group President and CEO Rob Shuter has been brought forward. Rob will be joining us on 13 March 2017.”
With the completion of my two key mandates of settling the Nigerian regulatory fine and appointing a new Group President and CEO, Nhleko will revert to his role as non-executive chairman as soon as Shuter assumes his position as Group President and CEO on 13 March 2017.
“In the interim, whilst I will continue as executive chairman to provide oversight, I will delegate more operational responsibilities to Gunter Engling, acting CFO and Stephen Van Coller, VP M&A and Strategy. I will also ensure that all outstanding senior management appointments are completed and the new senior management team is fully settled in before year end.”
During the quarter, Felleng Sekha was appointed as Executive: Regulatory Affairs and Public Policy, effective 10 October 2016.
“Despite a tough operating environment as a result of weaker macro-economic conditions, particularly in oil-dependent economies, as well as the regulatory challenges experienced, we are confident that the fundamental changes implemented over the past year position the Group well to participate efficiently and effectively in the data evolution and ensure sound stakeholder relationships and governance processes,” Nhleko says.
“During the period under review, the South African business delivered a pleasing QoQ sequential improvement in both revenue and margin. Revenue improved by more than 3,6% QoQ while the EBITDA margin expanded by more than 200 bp QoQ. MTN South Africa expects to maintain this improvement in EBITDA margin in the fourth quarter.”
After reporting a YoY decline in revenue in the first and second quarter of 2016 of 6,2% and 3,3% respectively, in the third quarter MTN Nigeria’s revenue YoY decline was limited to 1,2% as the business continued to experience incremental improvements in revenues. We are confident of delivering positive YoY revenue metrics in the fourth quarter.
MTN has commenced the repatriation of cash from MTN Irancell to the Group and expects to conclude the process over the next six months.
Meanwhile, MTN issued a SENS announcement on 28 September 2016 in which MTN Nigeria’s CEO Ferdi Moolman refuted allegations made on the floor of the Senate that MTN Nigeria had improperly repatriated funds from Nigeria. Moolman said: “The allegations made against MTN Nigeria are completely unfounded and without any merit.”
