GTB 737 banner Yudala banner

MTN set to activate turnaround plan

By News Express on 08/08/2016

Share on facebook Yahoo mail icon Gmail icon

Views: 609


MTN SA will spend more than R300m on a revamp of its 430 stores as part of a turnaround plan for the business, which reported weaker results for the six months to June.

The aim is to digitise the stores to enable customers to do self-service, and to respond faster to queries.

The investment is part of the R11bn set aside for capital investment in SA where subscriber numbers declined by 2.6% to 29.8-million in the half-year to June. Margins declined by 5.5 percentage points to 30.1%.

MTN SA is targeting a total of 1.1-million new subscribers by the end of the year.

“We are digitising processes that used to be manual. We want to eliminate queues at our stores and be more customer-centric,” said CEO Mteto Nyati.

“We will be a very responsive and agile company and putting (in place) systems that will help us respond immediately to customer needs and competition.”

In recent months, MTN experienced network outages that left subscribers without voice and data services.

The group outsourced part of the network management and retained some functions. That created challenges and confusion around responsibilities, said Nyati. The company has since defined clear roles and responsibilities and since then, “We haven’t had network outage since the first quarter.”

Overall, MTN group reported headline loss per share of 271c, dragged down by among other things the Nigerian fine, losses from digital businesses, foreign exchange losses and poor performance from its two biggest operations – Nigeria and SA.

MTN agreed to pay a fine of 330-billion naira ($1.7bn) for missing the deadline to cut off millions of unregistered subscribers. The fine, to be paid by the Nigerian unit, has wiped out profit from that business for the half-year to June. MTN has operations in 22 countries.

Executive chairman Phuthuma Nhleko said the performance reflects the confluence of a number of issues, “which created the perfect storm”.

Despite the disappointing performance, MTN declared a dividend of 250c, less than it paid a year ago. It expects to pay a full-year dividend of 700c. But this may increase if operating conditions improve materially.

MTN Group executive of investor relations Nik Kershaw said while earnings were lower, the business remained “solid and the dividends will be financed through group cash resources”.

Kagiso Asset Management investment analyst Aslam Dalvi expected some improvement in SA and Nigeria, but the operating environment remained “very challenging from a macroeconomic, regulatory and competitive point of view”.

He said Nigeria was a large market and near-term results would also be affected negatively by the more than 50% depreciation of the naira this year.

Nhleko said MTN was in the process of “a deep and fundamental strategic review of its operations and processes to ensure it is operating far more optimally given the pressure on voice revenues, evolving customer needs for high-quality data and more complex … market environments.”

The group expects to add a total of 8.1-million new customers by the end of 2016.

•Source: Business Day South Africa.

Source News Express

Posted 08/08/2016 1:22:29 PM

 

Share on facebook Yahoo mail icon Gmail icon


 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

 

You may also like...
Expert lauds new forex policy

Arsenal close gap on top of EPL table...

Why Delta lawmakers impeached Speaker

NAHCO Chairman throws in the towel

UN declares Boko Haram war ‘the largest crisis...

Wada inspects road construction

How Nigerian public officials pocket N400bn in bribes...

North, South tussle over resource control at National...

2,673 Nigerians perish in road accidents in 6...

BREAKING NEWS: Kidnapped Lagos students rescued

FG awards N126 billion road contracts

Wada cries out as arch-rival Audu takes early...

 

Latest News Python Dance: Air Force deploys fighter jets to South-East 22 school children, 130 others die in Mexico earthquake Customs impounds another 475 sets of arms at Lagos port Tony Elumelu strikes deal with Microsoft IPOB: Osinbajo meets Abia governor, IGP Bayelsa public primary schools remain shut over 10 months salary arrears Governorship battle: We have not endorsed any candidate — Anambra Traders Delta Line: Delta Govt. signs MoU with God is Good Motors Health workers race to contain cholera outbreak in northeast Nigeria Floods render thousands homeless in Niger Republic Nigeria to sell N135bn bonds next week Inter-state buses: Ojota park ready for relocated operators, says Lagos Govt

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (278,203 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (260,153 views) Shameless Genevieve Nnaji exposes breasts in public (211,273 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (177,380 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (176,585 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (158,059 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (136,508 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (126,695 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (120,191 views) Lagos plane crash: Journalist releases victims’ names (111,109 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (110,270 views) APC cries foul as PDP’s Fayose takes early lead in Ekiti governorship election (102,667 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (28) Business (2,691) Business Verdict (22) Columnists (740) Complaints & Requests (93) Enterprise & Opportunities (178) Entertainment (377) Features (487) Global Business Monitor (178) International (1,541) Interviews (129) Live Commentary (28) Love Matters (73) News (28,528) Opinion (808) Pidgin (8) Politics (3,934) Religion (625) Sports (1,322) Stock Watch (23) AMA & Al Jazeera Global Update

 

UBA mobile app

CBN words on marble advert

 

 

Manchester United vs Everton 4-0 All Goals & Extended Highlights

 

APO Newsbreak logo

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement



 

 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!