Voice under pressure, data growing in latest MTN results
While voice revenue contributed three-quarters (75,5%) of MTN’s total revenue in the past financial year, aggressive price competition and lower mobile termination rates caused a decrease of 1,8 percentage points in its contribution to overall revenue, says the group.
However, data services were the key driver of the Group’s revenue growth and increased their contribution by 3,1 percentage points to 15,1%. The number of data users increased by 37,4% to 80,6 million as it expanded itsr 3G networks and stimulated the adoption of data-enabled devices and smartphones.
In releasing its financial results for the year ending 31 December 2013, MTN said it now connects 207,8 million people in 22 countries across Africa and the Middle East. Group subscribers increased by 9,8% and revenue increased 12,0% (3,1%*) to R136 495 million.
MTN said this growth was positively impacted by a weakening of the rand against a number of currencies in which its businesses operate. For the year as a whole, the rand declined by 18,3% on average against the US dollar. On a constant currency basis, revenue increased by a more muted 3,1%. This was largely the result of a 6,1% decline in revenue in MTN South Africa and 5,7% growth in MTN Nigeria. Both large and small opco clusters delivered more pleasing results, MTN said, with revenue growth of 11,0% and 7,5% respectively, with particularly encouraging growth reported by its operations in Uganda, Ghana, Cameroon, Sudan, Yemen and Zambia.