MTN South Africa has reported “muted” subscriber numbers in the first three months of 2015. Average revenue per user fell by 4,8% to R87.
Both the post-paid and prepaid segments showed a slight decline in subscriber numbers to 5,4m and 22,6m respectively, MTN said on Thursday.
“This was impacted by seasonality, some short-term challenges in the distribution channel and lower handset sales,” it said. “Despite this, the operation remained competitive increasing total minutes by more than 100% year on year.”
MTN South Africa specifically blamed delays in engaging a replacement distributor for the muted subscriber numbers. A company spokesman could not immediately be reached for comment on why it has sought a new distributor.
Total minutes declined 6,1% quarter on quarter, impacted by seasonal factors.
Data revenue showed strong growth of 21,8% year on year and now contributes 27,7% to total revenue, it said. This was supported by attractive data promotions, including data bundles, the operator said.
Data usage increased 62,6% year on year, while the number of data users grew up 18,1% to 17,2m.
“While South African operation’s subscriber growth was impacted by seasonality and some operational challenges, revenue growth was encouraging,” said MTN Group CEO Sifiso Dabengwa.
The group, meanwhile, reported total subscribers of 227,5m in its 22 markets at the end of March. That’s a growth of 4,1m subscribers (1,8%) since 31 December.
In Nigeria, MTN’s biggest market, it grew its customer base by 2,1% quarter on quarter to 61,1m.
“MTN Nigeria improved subscriber growth trends, although revenue and minutes growth remains a challenge,” said Dabengwa.
MTN Irancell grew its subscriber base by 1,1% quarter on quarter to 44,4m. — © 2015 NewsCentral Media
