Strong MTN looks to more growth
BUSINESS| Aug. 17, 2011, 2:18 p.m.
With a strong six months under its belt, MTN says it is looking to grow shareholder value, with North African expansion a possibility.
MTN Group said in delivering its financial results for the six months ending June 2011 that it had seen a satisfactory operational performance, with subscriber growth of 7.5% to 152.3 million and revenue 1.3% higher to R56,542 million.
There was strong subscriber growth in most of the group’s operations, including an encouraging performance in Sudan. MTN said the period had been characterised by growing competition and decline in voice and data tariffs.
Delivering, the results, Group President and CEO Sifiso Dabengwa said highlights included the implementation of Mobile Money in 12 countries and the conclusion of the first tower deal.
At 30 June 2011, there were 5.1 million registered mobile money subscribers, with Uganda and Ghana each accounting for 37% of the total.
MTN said the conclusion of the tower deal by MTN Ghana marked the start of true infrastructure sharing and opportunities to unlock value. The company said other projects of this nature are under consideration.
Adding to MTN’s revenue streams during the period under review were continued investment in transmission (undersea cables and fibre) and radio technologies (2G, WIMAX and 3G) as well as mobile data solutions and sourcing of appropriate handsets.
Data revenue (excluding SMS) overtook SMS revenue for the first time and now contributes 6.3% and 6.0% respectively of total revenue.
On the question of mandatory SIM registration, MTN said with the South African registration deadline having passed, it had suspended 380 842 SIMs. With the Nigerian deadline 28 September, it had 50% of the base registered and with the Ghanaian deadline now 30 September, it had 90% of its base registered.
MORE BUSINESS NEWS
Kenyan SACCOS riding on innovation to attract customersAs confidence in mainstream banks remains low due to prohibitive interest rates, customers are embracing Savings and Credit Cooperatives (SACCO) as an alternative. Read More
BITC invites ICT investorsThe Botswana Investment and Trade Centre (BITC) is casting its net wide to appeal to players in the Information Technology sector to invest in the country. Read More
Yudala ‘an unstoppable movement’, says Zinox chiefThe opening of Yudala outlets, combining an online shopping platform with retail stores, has been described as a game-changer in Nigeria. Read More
Travelport, TTS sign reseller agreement for Africa, Middle East and Asia Pacific regionTravelport and TTS have signed a sales and distribution agreement for TTS products in the Africa, Middle East, and Asia Pacific regions. Read More
Airbnb to expand further across AfricaAirbnb, the world’s leading community-driven hospitality company, announced that its CEO, Brian Chesky will attend GES 2015 to meet with entrepreneurs from around the world and explore the sharing economy’s impact and expansion, particularly on the African continent - which represents a huge opportunity for the company. Read More
What African entrepreneurs wantOn the eve of U.S. President Barack Obama’s visit to Kenya for the Global Entrepreneurship Summit, GeoPoll, the Global Entrepreneurship Network, and the U.S. State Department have released a survey of 1,000 business owners throughout sub-Saharan Africa on entrepreneurship in their countries. Read More
ISON eyes 25,000 jobs, $400m in NigeriaISON Group has projected the creation of 25,000 new jobs and $400 million revenue within space of one or two years in Nigeria. Read More
NEC invests in XON to accelerate regional African growthNEC Europe, a wholly owned subsidiary of NEC Corporation, has invested in XON, the sub-Sahara African ICT group, and the two organisations will have an integrated market approach that will combine their local expertise in the region to provide greater sales coverage in the sub-Sahara African market. Read More
Orange, Airtel in talks on acquisitionsOrange and Bharti Airtel International (Netherlands) BV, have entered into an exclusive agreement to explore the possible acquisition by Orange of four Airtel subsidiaries. Read More
Equitel seeks a share of Kenya’s lucrative telco marketEquity Bank’s subsidiary, Finserve Africa, has launched Equitel, a new mobile payment and banking platform for its customers, which officially brings to the fore the convergence between mobile and banking services in Kenya. Read More
FEATURED STORYKenyan SACCOS riding on innovation to attract customers
As confidence in mainstream banks remains low due to prohibitive interest rates, customers are embracing Savings and Credit Cooperatives (SACCO) as an alternative.
BEST READ NEWS
IN DEPTHAs curtain falls on MDGs, what next?
Dr. Bjorn Lomborg, president of the Copenhagen Consensus Centre, speaks to Biztechafrica about setting smart targets.