Africa's largest cellular operator MTN has grown its subscription base to more than 150 million in its 21 operations.
In the first four months of the year to April, the group grew its base 5%, adding 7.4 million subscribers to reach 149 million customers, it says in a statement.
Since then, MTN says, the base has surpassed 150 million subscribers as it heads towards its target of adding 18.4 million more users this year.
MTN, which launched in 1994 as SA's second mobile operator, has operations in Afghanistan, Benin, Botswana, Cameroon, Cote d'Ivoire, Cyprus, Ghana, Guinea Bissau, Guinea Republic, Iran, Liberia, Nigeria, Republic of Congo (Congo Brazzaville), Rwanda, SA, Sudan, Swaziland, Syria, Uganda, Yemen and Zambia.
CEO Sifiso Dabengwa, speaking at the group's annual general meeting yesterday, said most of the markets in which the company operates showed strong growth, despite increased competition.
Dabengwa, who was MTN's COO, moved into the position of CEO in April, after Phuthuma Nhleko officially stepped down as group president and CEO. Nhleko announced last March he would leave the group at the end of March this year.
Plans on hold
However, despite the continued strong growth and good margins in most of its key operations, MTN has backtracked on a decision to create an international board to handle its operations outside of SA, where it is the second largest operator.
In December, MTN said it would appoint a CEO to head up its international operations to focus more intensely on the opportunities available outside of SA. It said it was searching for a suitable candidate and would set up a formal board.
Last year, there was speculation that the company could be moving its head office out of SA to Dubai, which would be closer to its high-growth operations. MTN's Middle East and North African operations are headquartered in Dubai.
MTN's west and central African region accounted for 45% of its total subscriber base in May, according to a subscriber update issued then. South and East Africa accounted for 22%, and the Middle East and North Africa contributed 33% of total subscribers.
Group revenue improved marginally in the four months to April, mostly because of the rand's continued strengthening against the dollar, which also weighed on operating profit. Operational performance in Cote d'Ivoire, Yemen and Syria was negatively affected by political unrest, says MTN.
The company adds its capital expenditure was lower than anticipated by the end of April, due to slower than expected network rollouts in SA, Nigeria and Ghana. MTN expects to catch up on its targeted projects, and full-year expenditure will be in line with expectations.
At year-end, it said it expected to spend R22 billion this year, an increase on 2010's R19.5 billion. The bulk of the investment would go into its operations in South and East Africa, where it earmarked an investment of R10.7 billion.
“MTN believes its current initiatives place it in good stead to take advantage of value-creating opportunities, while mitigating the various risks. MTN will continue to leverage its scale, operational capability and intellectual capacity in an industry which has become more competitive as it matures and evolves,” says Dabengwa.
Share