MTN NIGERIA'S REVENUE HITS N824.8bn WITH OVER 59.8M SUBSCRIBERS.

MTN Nigeria revenue increased from N793.6billion in 2013 to N824.80billion as at December 31, 2014 defying tough regulatory environment under which it operated as its subscriber base rose to
59.9 million whilst retaining the top spot in the 21 countries where the group operates.

According to MTN Group’s 2014 financial report released yesterday in Johannesburg, South Africa, Group subscription increased 7.5 per cent to 223.4 million with Iran having 44million, South Africa 28million, Ghana 13.9million, Ivory Coast 8million,Cameroun 9.7million, Syria 5.9million, Sudan 9million and Uganda 10.4million etc.

MTN Nigeria total revenue increased by 12.1 per cent or 3.7 per cent in constant-currency terms, below expectations, although MTN’s revenue market share remained stable. Data revenue grew strongly, increasing by 28.3 per cent to contribute 18.6 per cent of total revenue at year-end. The number of smartphones on the Nigerian network increased 51.2 per cent to 9.3 million as at December 31, 2014. Sifiso Dabengwa, Group president and CEO said the Group’s 2014 results reflect a challenging year, impacted by aggressive price competition, increased regulatory requirements and pressure on consumer expenditure.

The sharp decline in the oil price in the second half of the year had a marked impact on the economies and exchange rates of a number of African and middle eastern countries.

He said notwithstanding, these conditions, most of MTN’s large and small operating companies showed promising improvements in operational performance.

MTN Nigeria with market share of 49.02 per cent performance was impacted largely by regulatory determinations and economic pressures as well as operational challenges.

Brett Goschen, Group chief financial officer said MTN Nigeria reported first and second half revenues of N413.61bn and N411.19bn respectively while recording subscriber growth of 5.5 per cent year-on-year adding 1.5m added in the fourth quarter 2014. He said Group revenue grew by 6.4 per cent in the year largely the result of an increase of 12.1 per cent in MTN Nigeria’s revenue and a decline of 3.9 per cent in MTN South Africa’s revenue.

He said data revenue increased by 33.2 per cent in the year to contribute 18.7 per cent to total revenue at year-end. “Both our large and small operating company (opco) clusters delivered pleasing results, with reported revenue growth of 7.1 per cent and 13.0 per cent respectively,” he said.

Looking ahead, Dabenwga said “In 2015, MTN expects to benefit from a number of interventions put in place in South Africa and Nigeria in the previous year. In South Africa, we expect to build on the positive momentum gained on revenue and subscriber additions in the second half of 2014. The South African operation will also accelerate its immediate capital expenditure plans to support our medium-term growth prospects, particularly in the data area.

“MTN Nigeria will focus on active subscriber management, providing more competitive offerings and improving data usage. We continue to engage positively with the regulator. However, in Nigeria some level of uncertainty remains with regards to the implications of the oil price and currency fluctuations, which may lead to slower economic growth. This may result in some headwinds for the business in 2015,” he added.

To drive long-term sustainable growth across the Group, MTN said it will increase data revenue by encouraging uptake through increased smartphone penetration, competitive pricing, bundled services and increased speeds. It will continue MTN Mobile Money rollout and broader financial services whilst widening its distribution platform.

It will also introduce new products and services including micro lending, international remittances, retail payments and insurance. “We continue to develop our digital offering through focusing on local content and working with other suppliers. Through our partnership with Rocket Internet AG we now have a platform that facilitates easier rollout,” Dabegwa said.