In the first year ended June 30, MTN yesterday announced a 3.7 per cent growth in its subscriber base by 3.7 per cent to 43,184 million while the Group subscribers’ base went up 6.9 per cent to 175,997 million, with revenue topping 66.4 billion Rand, amidst tough operating environments in its 21 countries of operations.
The implication is that Nigeria contributes 24.43 percent to the group subscribers’ base in the 21 countries where it operates.
The financial results for January 1 to June 30 2012 issued from MTN Group Headquarters in Johannesburg, South Africa said despite challenges, revenue showed solid growth of 17.5 per cent year on year, driven mainly by strong operational performance and competitive value propositions in South Africa, Iran and Ghana. Growth in Nigeria was lower than anticipated as a result of intense competition. The Group EBITDA margin expanded marginally to 44.9 per cent mainly due to greater efficiencies and tighter cost controls across most operations.
In Nigeria, MTN experienced a challenging first half mainly due to aggressive pricing competition during the second quarter, driven by a multitude of bonuses on recharge, freebies and other promotional activity. The Nigerian market performance was also negatively impacted by a slower economy and the removal of fuel subsidies, which have led to lower consumer spending on telecommunications.
MTN Nigeria total revenue in naira grew by 4.4 per cent. This was driven mainly by a 11.5 per cent increase in interconnect revenue and a 130 per cent increase in data revenue, which benefited from innovative data offerings, improved 3G coverage and an increase in the number of smartphones.