MTN has released its quarterly update for the period ended 30 September 2018, which shows a drop in subscriber numbers for South Africa.
The results were a mixture of positive and negative, with MTN SA recording service revenue growth of 3% year-on-year.
“Data and digital revenue increased by 12.5% and 9.9% respectively, while outgoing voice revenue declined by 8.4%,” said MTN.
MTN added that the local economy is weak, and consumers are feeling the pressure of a higher VAT rate.
While prepaid service revenue increased by 0.5% – and postpaid service revenue increased by 1.9% – subscriber numbers were down.
MTN said it has 23.7 million prepaid customers, down 3.4% quarter-on-quarter, and 2.9 million postpaid users – up 2.1% quarter-on-quarter.
The number of active data subscribers increased by 6.7% to 13,5 million, however, and MTN said this was thanks to it taking steps to transform data prices.
Its roaming agreement with Cell C is also “contributing positively towards revenue and EBITDA” and will be implemented in line with MTN’s planned timelines.
In terms of finances, MTN SA’s margin on EBITDA was at 34.5% – from 34.8%.
“The lower sequential EBITDA margin was largely impacted by higher device prices, following the weakness in the rand exchange rate and increased device sales in the quarter.”