MTN Group has, with the help of “external assistance”, begun a “deep and fundamental strategic review” of its operations and processes to ensure it is operating “far more optimally given the pressure on voice revenues, evolving customer needs for high-quality data and more complex and competitive market environments”.
The review, it said in notes alongside its interim financial results for the six months ended 30 June 2016 — in which it reported its first loss as a publicly listed company — will “reset and position the business for future growth in a rapidly evolving sector”.
As part of the review, MTN said it will establish an advanced analytics unit to support the business to drive network quality and high-speed data connectivity, especially in key locations where there is high demand.
It has promised to provide compelling segmented offerings to consumers and businesses, improve customer service and increase targeted smartphone uptake.
Continued network optimisation and improved management of operational expenditure, including the implementation of zero-based budgeting, will also contribute to improving efficiencies, it said.
In addition, MTN will continue to explore opportunities to create value through leveraging its extensive infrastructure across Africa and the Middle East, it said.
“Improving the way of work through increased co-ordination between different parts of the business is key to the success of this strategy,” it said.
“The group will embark on a process of housing new revenue streams, particularly digital services, outside the core business. This will allow for more agility and greater flexibility to accelerate growth in these areas. New revenue streams are expected to increase their contribution to revenue over the next 12-18 months.”
It will also “continue to seek value-accretive expansion opportunities in selected geographies across Africa and the Middle East”.
The group said that by the end of 2016, it will have completed an overhaul of its leadership team, with “a permanent and refreshed senior management team to take the group forward”. This includes appointing a new chief financial officer by year-end to replace Brett Goschen, who has resigned. Rob Shuter remains on track to take over as group CEO by no later than 1 July 2017. — © 2016 NewsCentral Media