MTN subscriber base up by 3.7 percent in December quarter (Africa)
MTN Group recorded 170,573,000 subscribers at 31 March 2012. This is a 3.7 percent increase for the quarter from 164,501,000 subscribers recorded at 31 December 2011. The Group delivered a satisfactory performance notwithstanding continued high levels of competition in key markets.
Consistent with the new management structure, this commentary includes detailed analysis of each of the five larger operations (MTN South Africa, MTN Nigeria, MTN Irancell, MTN Ghana and MTN Syria) and highlights from the rest of the operations. However, a schedule of subscriber and ARPU numbers for all operations is also given.
MTN South Africa contributed 13.3 percent to Group subscribers and delivered a sound performance in a mature market. It increased its subscriber base 3.2 percent for the quarter. The postpaid segment performed well, increasing its subscriber base by 4.4 percent mainly due to attractive data propositions. The prepaid segment increased its subscriber base by 2.9 percent despite increased competition. This was attributable to competitive promotions including the continued success of MTN Zone through improved informal distribution channels. Blended ARPU declined 7.9 percent mainly due to a reduction in interconnect rates to 56 cents in March 2012 from 73 cents previously. Postpaid and prepaid ARPU decreased 6.7 percent and 8.1 percent respectively.
MTN Nigeria contributed 25.1 percent to Group subscribers and increased its subscriber base by 3.0 percent for the quarter. Net connections of 1,258,000 were negatively impacted by a nationwide strike in January and aggressive competition. Slower net connections at the beginning of the year resulted in a marginal loss of MTN’s share of the market. However, corrective measures enabled the operation to increase network capacity and improve net connections later in the quarter. No clarity has yet been provided on the deadline for SIM registration. The harmonizing of MTN Nigeria’s database of registered subscribers with the NCC database is in progress. Local currency ARPU declined by 1.1 percent for the quarter.
MTN Irancell contributed 21.6 percent to Group subscribers. On a proportional basis, reflecting MTN’s 49 percent ownership, its contribution was 11.9 percent. It continued to deliver a solid performance growing its subscriber base by 6.2 percent and increasing its share of the market for the quarter. This was mainly due to attractive value propositions including 2-in-1 SIM packs and various seasonal promotions. At the end of March, MTN Irancell recorded 213 000 WiMax customers. Local currency ARPU increased 3.7 percent due to improved network quality. The third mobile operator is expected to launch commercially in the second quarter of 2012.
MTN Ghana contributed 6.1 percent to Group subscribers, increasing its subscribers 2.3 percent for the quarter and maintaining market share in a competitive environment. This was due to attractive promotions as well as the implementation of a regional structure to better manage sales and marketing. Local currency ARPU increased by 3.4 percent mainly because of revised value propositions. The deadline for SIM registration was 1 March 2012 resulting in a disconnection of 21,237 subscribers representing 2 percent of the subscriber base. The sixth mobile operator had its commercial launch at the end of April 2012.
MTN Syria contributed 3.3 percent to Group subscribers. Its performance continued to be hampered by civil unrest in the country, which resulted in a reduction of subscriber numbers of 23,000 subscribers and a decline in local currency ARPU of 8.5 percent.
The rest of MTN’s operations contributed 30.5 percent to Group subscribers, representing an increase in users of 3.5 percent. MTN Uganda increased its subscriber base by 1.2 percent as the market slowed due to SIM registration. MTN Sudan continued to show good progress, increasing its subscriber base by 5.3 percent for the quarter attributable to attractive value propositions and improved distribution. MTN Cameroon also performed well and increased its subscriber base by 9.8 percent. This was attributable to a more aggressive informal distribution strategy and attractive value propositions. MTN Cote d’Ivoire increased its subscriber base marginally by 0.5 percent because of the removal of 200,000 non revenue generating SIM cards and lower gross connections due to SIM registration.
The Group continues to prioritise key initiatives to better manage the business as consumer trends evolve and competition intensifies. Data and related products and services continued to gain momentum. Data, including SMS, contributes 14.4 percent to revenue, driven mainly by MTN South Africa. Mobile Money has now been launched in 13 countries. At the end of March 2012, MTN had 6.2 million Mobile Money subscribers. Initiatives to optimise costs continue to be rolled out and the centralized procurement initiative is showing solid progress.
Network quality and capacity remains a key imperative for the Group. The majority of the operations continued to aggressively rollout network and achieved satisfactory progress for the quarter.
MTN Zone discounts attracts 800,000 subscribers (South Africa)
800,000 customers arenow linked with MTN Zone, a new billing system. Taking into the account the customer location and time of call, between 10% to 99% per second bill can be save as offered by MTN Zone.
Philip Besiimire, the senior manager for consumer marketing, said, In just five days, over 800,000 clients have registered for the offer with an average of 11 people connecting per second during the busiest hour.â€
The average discount being received was 55% during the day across the country. This means a 30-second call costs sh113 compared to sh210 if you were on Per Second. That is a saving of sh120,†said, chief operations officer, Erik Van Veen. In East Africa it is the first time that MTZ Zone is introduced.
