MTN Nigeria subscriber base increases but revenues drop
JOHANNESBURG, (CAJ News) – THE MTN Group has announced a decline in revenues at its Nigerian entity during the first half of the year.
The company, during a results presentation event in Johannesburg, blamed the weak macro-economic environment, aggressive competition and operational execution challenges for the setback.
Despite this, the operation grew its subscriber base by 4,9 percent, increasing total subscribers to 62,8 million and maintained market share for the period. Subscriber growth during the period was underpinned by improved segmented offerings, churn management and attractive promotions.Total revenue declined 9 percent (or 1,1 percent in constant-currency terms.)
This was mainly impacted by a fall in outgoing voice revenue as a result of lower competitor voice tariffs, increased pressure on consumer spending and the use of multiple SIM cards, which is estimated to be almost 50 percent of the subscriber base.
The decline in the effective tariff translated into lower than expected minutes of use for the period. Data revenue continued to show healthy growth, increasing 21,3 percent despite a decline in data tariffs and contributed 20,5 percent to total revenue. This was mainly attributable to the growth in 3G device penetration, which increased 84,6 percent to 14,9 million and a 19,2 percent increase in data users for the period. Digital revenue showed positive growth supported by the continued success of the MTN music+ and other lifestyle services. Meanwhile, MTN Nigeria’s Mobile Money offering, Diamond Yellow, continued to gain traction with 3 500 merchants now in place and approximately 4,3 million accounts registered at the end of June 2015.
The MTN Nigeria EBU continued to rollout offerings targeted at the SME segment. At the end of the period the operation had more than 600 000 SMEs added to its MTN yellow directory.
– CAJ News
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