The MTN share rose 36c to R13.54 yesterday after the cellular network said its subscriber base had risen about 17.7% to almost 6.7 million subscribers during the third quarter to 31 December.
The figure includes the group`s subscribers in other countries in Africa, which now account for 1.79 million subscribers, 26.9% of the total subscriber base.
Nigeria in particular has shown good growth. MTN CE Phuthuma Nhleko says although the number of subscribers there reached 908 000, an increase of 49.1%, the country reached the one million subscriber mark on 10 February.
MTN International MD Lazarus Zim says a microwave network has been formally commissioned, and this will cover 35 cities and 80 smaller towns. There are eight switches now fully operational, with more than 400 base stations in operation.
He says the rapid subscriber growth has proved to be the biggest challenge in Nigeria, as it resulted in congestion on the network. The group has targeted additional capital expenditure on increasing capacity.
Nhleko says growth in Nigeria is expected to be maintained in the next quarter, notwithstanding a slight reduction in average revenue per user (ARPU) being recorded there.
At $54, ARPU in Nigeria is the highest of the operations.
In SA, MTN`s prepaid subscriber base stood at 3.94 million, while the postpaid base grew by 4.2% to 928 000.
Postpaid ARPU stands at R611 a month while prepaid ARPU is R103 a month. Blended ARPU numbers remained at R210 a month.
"It is obvious that competitive pressures in SA have put the EBITDA (earnings before interest, tax, depreciation and amortisation) margins under pressure, and we expect them to continue to be under pressure for the foreseeable future," says Nhleko.
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