JSE-listed MTN - Africa's largest cellular operator - expects to boost its subscriber base by almost another 2.5 million users for the full year, which ends in December.
The operator yesterday released subscriber numbers for the three months to September and said it grew its base by 3.8%, to 182.7 million. MTN gained subscribers in all of the countries in which it has operations, with the exception of Guinea-Bissau, where it lost 2.5% of its base.
In the first half of the year, the group grew subscribers 6.9%, to 176 million, compared with its base at the end of December, which is its financial year-end.
President and CEO Sifiso Dabengwa says the gains are "satisfactory" and its results were "underpinned by solid operational management and the rollout of appealing value propositions despite aggressive pricing competition, regulations and economic challenges across the different markets in which the group operates".
Dabengwa says the group focused on executing its strategy of unveiling competitive products and services in response to aggressive price declines in the market, a continued focus on data growth and improved network rollout during the quarter.
Investing in quality
MTN says its gains come despite strong competition and it has now increased its guidance for net additions for 2012 from 21.25 million to 23.7 million. MTN expects to add another 3.5 million subscribers in SA, 5.3 million in Nigeria, and 5.5 million in Iran, with the rest of its operations making up the balance.
Nigeria, at 45.7 million, is still its largest country of operation, followed by Iran at 39.4 million. Guinea-Conakry was its fastest growing operation, gaining 11.5%, to reach 2.3 million users, followed by Zambia, which gained 10.1%, to 3.47 million.
Dabengwa says, for the rest of the year, acceleration of its network expansion will be a key priority across the majority of its operations "as network quality remains a key enabler for our business".
MTN expects to spend R24.4 billion in capital this year, of which 70%, or about R17.08 billion, had been committed by the end of June. The bulk of its investment, R10.5 billion, would go towards improving its Nigerian network, which had experienced issues with capacity after MTN cut prices to respond to the competitive market.
MTN also planned to spend R4.6 billion in SA, and another R1.1 billion in Ghana. An additional R869 million would be spent in Syria, while remaining operations would benefit from a R6 billion investment injection.
MTN's shares closed slightly lower at R150.8 yesterday after it lost 30c, or 0.2%, on the day.
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