An announcement by the MTN Group states that its global subscriber base has surpassed the landmark of 150 million. An addition of 8.4 million customers during the initial four months of this year has largely been instrumental in pushing the numbers higher up. Apparently, the company’s presence in 21 countries helped.
On the other hand, the strengthening of the rand against the USD in addition to increased competition have been the major factors in posting only a marginal improvement as far as the Group revenue is concerned. Political unrest in Cote d` Ivoire has been instrumental in negatively impacted the group’s operational performance in the region; and to a less significant degree in Yemen and Syria.
In retrospect, if there had been no fluctuations in the exchange rate, revenue and earnings before interest, tax, depreciation and amortization could have been considerably higher. However, voice revenue has been the primary driver of the total revenue as non voice revenue contribution maintains a steady improvement.
In view of the slower than planned implementation in Nigeria, South Africa and Ghana, MTN’s capital expenditure was inferior than expected till the end of April. However, a commitment by the company in terms of a considerable amount of the capital expenditure previously anticipated has been reported. These pending projects are touted to gain momentum in the second half of the year putting the full year capital expenditure to a great extent in line with the original guidance.
MTN South Africa is being credited for continuing with a sound financial performance in a relatively mature market. So far, it is being continually noted the operation’s EBITDA margin showing a positive upwardly trend; lower selling and distribution costs and somewhat the controlled network operating costs are reported to be main factors.
MTN Nigeria saw a slight decline in revenue growth as increase in usage was neutralized in part by the decreased tariffs, initially rolled out in the form of a revised tariff plan in February 2011. On the positive side, EBITDA margins were characterized by robust figures at the same level as those reported in 31 December 2010 in spite of the multitude of competitive and operational challenges.
MTN Irancell sustained a commendable performance. Its local currency revenue grew on the higher side of 20 percent in comparison to the same period the previous year. Similar EBITDA margins as those of 31 December 2010 were reported. According to MTN, backed by its current spell of initiatives, it is in good stead to capitalize on value accretive opportunities and at the same time, taking care of the many risks and challenges it stands to face. MTN keeps on bracing up for a mature and evolving industry that has become more competitive by way of leveraging its scale, operational capability and intellectual capacity.
At the end, the board has favored non-pursuance of the formation of a formalized subsidiary company board for the international operations at the current stage.
