Fidelity bank banner Bayelsa State banner
MTN set to activate turnaround plan

By News Express on 08/08/2016

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 955


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 Share on Google+


 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25 minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

 

You may also like...
6 Boko Haram insurgents surrender in Borno

Death toll in Offa bank robbery hits 30...

Court orders forfeiture of Governors’ Forum’s N1.4b to...

Gov Obiano revs up campaign for environmental sanity...

Rivers PDP calls for the arrest of Dakuku,...

Osun Guber Polls: INEC releases timetable

Bayelsa ex-militants barricade road over non-payment of amnesty...

Delta Speaker tasks BEDC on 24/7 power supply...

Anambra election: Obiano declares November 17 public holiday...

HURIWA faults appointment of Labaran Maku as Defence...

Shock, sadness as Ivorian star Cheick Tiote slumps...

Official result: Jonathan leads Buhari in presidential election...

 

Latest News Soldier kills 13-year-old school boy in Ondo Abandoned Projects: EFCC goes after Niger Delta contractors Policeman killed as Shiites continue protest against El-Zakzaky's detention Russia 2018: Pastor demands money to pray for Super Eagles’ win over Iceland 2018 Budget: South East senators express shock over reported cuts Nigerian banks lose N12.30bn to fraud in 4 years – NIBSS Auditor’s Report: NASS to sanction erring MDAs APC Convention: APC diaspora members throw weight behind Oshiomhole as new party chairman Again, court dismisses serial fraudster, Emmanuel Nwude’s application for bail Egypt to open defence office in Abuja Fake eye surgeon in police net World Cup: Saraki, others to watch Super Eagles against Iceland in Volgograd

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (352,354 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (351,744 views) Shameless Genevieve Nnaji exposes breasts in public (280,306 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (230,158 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (209,106 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (208,830 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (181,861 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (163,963 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (153,962 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (148,664 views) Lagos plane crash: Journalist releases victims’ names (143,879 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (135,702 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (50) Business & Economy (3,261) Business Verdict (44) Columnists (870) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (505) Features (607) Global Business Monitor (283) International (2,045) Interview (154) Live Commentary (28) Love Matters (124) News (36,383) Opinion (1,004) Pidgin (10) Politics (5,299) Religion (771) Sports (1,555) Stock Watch (30) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Portugal v Spain 2018

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement