MTN South Africa’s revenue declines, but data a big winner

MTN has released its financial results for the six months ended 30 June 2015, which show that its South African operations’ revenue declined by 1.4%. Data revenue increased by 26.6%.

MTN SA increased its subscriber base by 1.8% to 28.5 million. The prepaid subscriber base increased 2.7% to 23.2 million, while the post-paid segment declined by 1.7% to 5.3 million.

Total revenue declined by 1.4% to R18.9 billion. This was mainly due to a 27.5% reduction in handset revenue.

Outgoing voice revenue decreased by 0.4%, while data revenue grew by 26.6% for the period and now contributes 30.1% to total revenue.

The number of smartphones on MTN’s network increased by 9.1% to 5.8 million, while the number of data users increased by 18.1% to 17.3 million.

Strong network expansion

Capex for the period was R4.7 billion – 133.9% higher than the comparable period in 2014.

During the last six months, MTN SA added 267 new 2G sites, 1,939 largely co-located 3G sites, and 1,891 LTE sites.

“The key focus during the first half was the expansion of 3G and LTE coverage and improved network quality in key cities. Roll-out is expected to ramp up in the second half of the year,” said MTN.

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MTN South Africa’s revenue declines, but data a big winner