NewsExpress advert Yudala banner
Subscriber losses take toll on MTN

By Giulietta Talevi on 26/10/2017

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

Views: 743


MTN closed 0.95% higher on Tuesday, despite releasing what some analysts called a “pedestrian” update in which total revenue grew 6.9% for the third quarter ended-September.

Despite reporting a slight dip in subscriber numbers, to 230.1-million, MTN has grown voice traffic 9% and data revenue 31.4%, as data traffic more than doubled.

But this comes from a “rebased base”, said GT247 senior trader Paul Chakaduka.

MTN was forced to disconnect more than 5-million subscribers in Nigeria in 2015, “so you need to have those numbers look significantly better”.

MTN was still “just catching up” and should be reporting revenue growth in the 20% to 30% range, he said. “On a readjusted number, in my opinion, it doesn’t look great,” Chakaduka said.

MTN is still wrestling with subscriber losses in its key geographies. In Nigeria, the subscriber base declined 5.2% to 50.3-million, which it blames on “the modernisation of subscriber definitions”.

MTN has to expand its SIM registration footprint as a “priority” if it is to increase subscriber numbers, according to the firm.

In Uganda, it disconnected about 750,000 subscribers as a result of SIM registration rules and in SA MTN lost 1% of its users, mainly in the prepaid segment after it had withdrawn a second-quarter promotion. Postpaid subscribers were flat.

In Cameroon, MTN’s subscriber base fell 1% and it was fined $6.6m by the Telecommunications Regulatory Board for allegedly not complying with spectrum and subscriber registration laws. However, data growth across the group is strong.

Among its strongest regions were Nigeria, where data usage rose 72.1%; Iran, which grew 64.5%; Ghana, up 39.7%; and SA, which gained 21%.

Sentio Capital portfolio manager Imtiaz Suliman attributed the share price gain to the fact that there were “no accidents” in the update — something shareholders have been primed for since MTN dropped its Nigerian subscriber bombshell in 2015 and for which it agreed to pay R25.1bn  in penalties.

MTN said it was on track to meet its financial 2017 targets: in SA that is “mid-single digit service revenue” and a rise of between 0.5% and 1% in margins. In Nigeria, the company is pressing for upper single-digit sales growth.

Chakaduka is also concerned that MTN’s balance sheet will not be able to sustain the sort of dividends it has paid in the past, although Suliman said the “sustainability of MTN’s cash flow seems intact”.

MTN had cut its capex budget for 2017 to R30bn at the time of its interim results and said in the update that it had so far spent R18bn of that amount.

Of the 17 analysts surveyed by Bloomberg, only six have “buy” recommendations on the share. Four regard it as a “hold” and seven reckon it is a “sell”.

The shares have struggled to make headway in 2017 and are 1.5% down year to date.

That comes despite an almost complete overhaul of its executive under new CEO Rob Shuter.

During the quarter, the firm made four senior appointments across the business. It also named former MTN Ghana CEO Ebenezer Asante vice-president of its South and East Africa and Ghana region.

Text courtesy of BusinessDay SA.

 

Source News Express

Posted 26/10/2017 10:10:08 AM

 

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


 

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...
ASUU: Academic Strike Union of Universities, By ’Fisayo...

Group condemns tour operators over poor services to...

Stop assaulting our officials or prepare to face...

Economy: I foresee doom if government does not...

26 oil marketers get N48 billion subsidy claims...

Floating corpses: Ngige indicted over Ezu River Report...

Power: Amosun calls for better service before tariff...

Mass sack at PPPRA; workers employed during Jonathan’s...

PDP Governors solidly behind Makarfi —Dickson

Osun Doctors: When the deliverer needs deliverance, By...

Army trains troops on counter terrorism operations

Military to de-radicalise 43 surrendered Boko Haram insurgents...

 

Latest News UN staff serve strike notice Tinubu fingered in alleged plot to kill APC Troops nab herdsman with bullet-proof vest FG confirms 110 Dapchi schoolgirls missing, steps up rescue efforts FRSC rescues pregnant woman from suspected kidnappers China’s ruling party plots constitution change, 3rd term for Presidency Xi Jinping Corruption index: Nigeria’s poor ranking a wake-up call for Buhari administration — SERAP Boko Haram attacks Madagali (Adamawa) 35 times in 10 months •Kills 27, destroys over 100 houses Muslim scholars urge ‘uprising’ over US’ Jerusalem embassy move 297,000 vulnerable households get FG’s stipends in 20 states Army postpones 77 Regular Recruitment — Spokesman Jesus’s burial site shut in protest

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (327,161 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (319,386 views) Shameless Genevieve Nnaji exposes breasts in public (255,897 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (209,912 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (195,271 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (188,447 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (164,120 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (147,468 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (140,864 views) Lagos plane crash: Journalist releases victims’ names (130,190 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (128,890 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (123,648 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (34) Business (2,912) Business Verdict (34) Columnists (806) Complaints & Requests (94) Enterprise & Opportunities (203) Entertainment (447) Features (549) Global Business Monitor (226) International (1,809) Interviews (143) Live Commentary (28) Love Matters (106) News (33,120) Opinion (885) Pidgin (10) Politics (4,525) Religion (687) Sports (1,442) Stock Watch (28) AMA & Al Jazeera Global Update

 

 

Football president George Weah puts Liberian army to the test

 

APO Group Partner

 

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