MTN has released its financial results for the six months ended 30 June 2017, which showed a good performance in its South African operations.
MTN South Africa increased its subscriber base by 1.5% to 31.2 million, and increased its revenue by 1.6% to R20.1 billion
The increase in revenue was supported by a 5.2% increase in service revenue, an 18.5% increase in data revenue, and a 37.6% increase in digital revenue.
MTN SA’s prepaid subscriber base increased by 1.7% to 26 million, while the postpaid segment showed early signs of a recovery – increasing by 0.2% to 5.2 million.
MTN’s local operation cut is capital expenditure (CAPEX) by 27.2% to R3.4 billion, which helped increase the company’s EBITDA margin to 33.5%.
The MTN SA margin improvement was largely supported by lower handset subsidies and volumes, as well as a strong rand benefiting the cost of handsets in the period.
MTN said the stronger performance was made possible by a solid prepaid market performance, network expansion, and a strengthened leadership team.