The MTN Group posted a solid performance for the six months ended 30 June, driven mostly by its international operations, particularly in Nigeria, Cameroon and Syria.
The overall performance was supported by its data services delivering consistent strong results, and MTN mobile money becoming an increasingly important part of its offering.
The leading telecommunications company has reported a 3,5% rise in subscribers, adding up to 215-million. The revenue also increased by a solid 10,7% to R72,759-million. Group earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 19,6% to R33,663-million.
As expected, substantial growth was experienced in data and MTN Mobile Money usage. Data revenue and users increased by 38,9% and 7,3% respectively. The Group is well positioned for sustained growth and continues to benefit from its ongoing investment in its network.
“The competitive segmented offerings in combination with MTN’s improving network quality and capacity are the key factors supporting its growth over the period,” says Frost & Sullivan ICT Industry Analyst, Joanita Roos.
However, the South African operation experienced continued pressure over the six months and the revenue decreased by 7% to R19,157-million.
MTN South Africa comprises approximately of 37% of the South African market share and its core business is the provision of voice, data and telemetry offerings and solutions. MTN South Africa has been under pressure for some time because of strong competition from rivals.
Steps are being taken to maintain and grow market share and the South African operation is expected to experience positive subscriber and revenue growth in the next 6 months through offering innovative and affordable products.
“The group recently strengthened its leadership structures by announcing the appointment of Zunaid Bulbulia as Group Chief Operating Executive, with the incumbent, Ahmad Farroukh replacing Bulbulia as CEO of MTN South Africa at the end of July. This announcement is in line with MTN’s strategy to regularly rotate key talent within the company,” notes Roos.
“MTN continues to respond to challenges in the markets in which it operates and the restructuring of the leadership is a positive step towards enhancing its competitive position and, ultimately, to ensure sustainability in the long term.”
MTN has also strengthened its leadership in Nigeria which is currently the group’s biggest revenue earner, comprising approximately 37% of the group’s total revenue. MTN Nigeria revenues increased by 21,5%, reaching R27,099-million, and EBITDA increased by 11,3% to R16,280-million. However, the operation in Nigeria has experienced some regulatory pressure and localised network performance challenges.
Roos expects MTN to continue its solid investments in both infrastructure and infrastructure-sharing initiatives to ultimately ensure network quality and capacity which are key factors leading to continued growth and sustained market position. Overall, the MTN Group posted a solid performance, mostly driven by its international operations.
MTN is expected to continue to explore opportunities and expand its product offering beyond the traditional voice, including MTN Mobile Money, broader financial service offerings, innovative ICT solutions and a move into the digital space.