Diversification into new geographies is "an absolute imperative", says MTN Group CEO Phuthuma Nhleko.
Commenting on the cellular network operator`s results for the six months to September, Nhleko says that effectively the results stand on two pillars - Nigeria and SA. The group also has smaller operations in Cameroon, Uganda, Rwanda and Swaziland.
"Of course the Middle East seems an obvious logical extension," he adds.
There are new licences to be issued in Saudi Arabia and the United Arab Emirates, among others. Egypt is also planning to issue a third licence in that country.
Nhleko says this does not mean that MTN is necessarily applying for those licences, but it does illustrate that there are opportunities available. However, the group continues to look for new licences in Africa and the Middle East.
The group achieved revenue of R13.72 billion for the six months, up 22% from the R11.72 million achieved in the same period the previous year.
The revenue figure is roughly equal to that of rival Vodacom, which this week reported revenue of R13.49 billion for the same period. However, MTN`s net profit far exceeds that of its competitor.
MTN achieved a 60% growth in net profit, from R1.81 billion to R2.9 billion, while adjusted headline earnings per share rose by 34% to 165.8c. Vodacom`s net profit amounted to R1.43 billion.
Subscriber growth
MTN`s subscriber numbers rose by 40% to 11 million. MTN Nigeria increased its active subscriber base by 32% since March to 2.59 million. In SA, the group recorded 6.9 million capable subscribers. In March, it had 6.27 million subscribers in SA.
Capable subscribers are defined as subscribers making or receiving a revenue-generating call within three months. Active subscribers are those who have made or received such a call within 30 days.
In SA, blended average revenue of R187 per user per month (ARPU) was recorded for the six months. Postpaid ARPU slipped from R597 to R587 and prepaid ARPU fell from R104 to R97.
"The decrease in ARPU is the result of strong subscriber growth in lower-end segments of the mobile market in SA," Nhleko says. Revenue in SA rose from R7.16 billion to R8.24 billion.
In Nigeria, where revenue grew 38% to R4.6 billion, blended ARPU slipped from $51 to $48.
Nhleko says the group is preparing to offer full 3G commercial services during the first half of next year, pending favourable confirmation of licence terms and conditions.
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