MTN’s data revenues have increased 43,3% for the first quarter of 2014.
The total number of subscribers grew 1,1% from December 2013, while Mobile Money subscribers continued to grow, reaching 16,6-million.
MTN Group president and CEO Sifiso Dabengwa comments: “MTN delivered a satisfactory performance during the first quarter of 2014, underpinned by strong data growth, competitive offerings and improved network quality and coverage.
“Our operating environment remains tough with persistent price competition and regulatory challenges in key markets.
“Subscriber numbers grew marginally by 1,1% quarter-on-quarter from December 2013. This was mainly due to the ban on the sale of SIM cards in Nigeria during March, the disconnection of non-revenue generating subscribers in South Africa and slower subscriber growth in Iran.
“Data and Mobile Money remain key areas of focus for the Group as traditional voice revenue remains under pressure. We note encouraging growth in data revenues increasing 43,3% year-over-year and contributing 17,0% of total revenue and a 12,0% increase in Mobile Money subscribers.
“Cost containment and the execution of our infrastructure sharing strategy, particularly in South Africa, continue to make good progress.”
MTN South Africa continued to focus on regaining relevance in the pre-paid segment and maintaining its post-paid market share. Overall subscriber numbers reduced by 824 768 bringing total subscribers to 24,9-million at the end of the quarter. This was largely due to the disconnection of 973 064 subscribers who had been showing activity but not generating revenue as per our 90 day RGS requirement.
The post-paid segment delivered a satisfactory performance, growing subscribers by 3,7% to 5,2-million. This was supported by continued growth in telemetry SIMs, segmented marketing campaigns as well as attractive converged offers.
While the pre-paid segment remained challenging, the introduction of MTN Sky (unlimited pre-paid bundled price plan) and the launch of a new pre-paid voice promotion of 79 cents per minute for both on-net and off-net calls in the second quarter, are expected to deliver improved subscriber performance going forward. Data continues to bolster revenue growth, increasing by 13,3% year-over-year and now contributes 22,8% of the operation’s revenue.
Data subscribers increased to 14,5-million largely due to competitive data packages and the launch of the low-cost Steppa smartphone. Blended ARPU decreased 11,3% to R100,47.
MTN South Africa remains committed to seeking a permanent resolution to the recent MTR glide path and asymmetry regulations announced by the Independent Communications Authority of South Africa, which came into effect on 1 April for a period of six months.
MTN Nigeria delivered a satisfactory performance during the quarter and increased its subscriber base despite the one-month ban on the sale of SIMs imposed by the Nigerian Communications Commission (NCC) for three of the four GSM operators.
MTN Nigeria grew its subscribers marginally to 57,2-million and the operation’s market share declined marginally to 49,3%. We continue to engage constructively with the NCC on quality of service KPIs and regular market activities resumed from 1 April.
MTN Irancell increased its subscriber base by 1,0% to 41,8-million. MTN Ghana increased subscribers by 1,0% to 13,1-million. MTN Cameroon performed well, delivering a 6,0% increase in its subscriber base to 9,2-million.
MTN Ivory Coast increased its subscribers by 6,3% to 7,5-million, maintaining its market share and increasing value share in a highly competitive market. MTN Uganda reported a good performance increasing its subscriber base by 8,4% to 9,5-million.
MTN Sudan experienced a net reduction of 52,000 subscribers with the overall base remaining at 8,7-million subscribers. MTN Syria continues to operate in an extremely challenging environment and subscriber numbers decreased 1,8% to 5,7-million.
