MTN lost 824,768 subscribers over the last three months, while the company\u2019s average revenue per user (ARPU) declined by 11%. This is according to the company\u2019s quarterly update for the period ended 31 March, 2014.<\/p>\n
MTN Group, which has operations in 22 countries across Africa and the Middle East, grew its subscriber base by 1.1% to 210.1 million.<\/p>\n
Data revenue bolstered the group\u2019s performance, increasing 43.3% year-on-year.<\/p>\n
“MTN delivered a satisfactory performance during the first quarter of 2014, underpinned by strong data growth, competitive offerings and improved network quality and coverage,\u201d said MTN Group president and CEO, Sifiso Dabengwa.<\/p>\n
“Data and Mobile Money remain key areas of focus for the Group as traditional voice revenue remains under pressure.\u201d<\/p>\n
MTN South Africa\u2019s overall subscriber numbers reduced by 824,768, bringing total subscribers to 24.9 million at the end of the quarter.<\/p>\n
\u201cThis was largely due to the disconnection of 973,064 subscribers who had been showing activity but not generating revenue as per our 90 day RGS requirement,\u201d MTN said.<\/p>\n
MTN SA\u2019s post-paid segment delivered a better performance, growing subscribers by 3.7% to 5.2 million.<\/p>\n
\u201cThis was supported by continued growth in telemetry SIMs, segmented marketing campaigns as well as attractive converged offers,\u201d MTN said.<\/p>\n
\u201cWhile the pre-paid segment remained challenging, the introduction of MTN Sky and the launch of a new pre-paid voice promotion of 79 cents per minute for both on-net and off-net calls in the second quarter, are expected to deliver improved subscriber performance going forward.\u201d<\/p>\n
Data continued to bolster revenue growth for MTN SA, increasing by 13.3% YoY and now contributes 22.8% of the operation\u2019s revenue.<\/p>\n
Data subscribers increased to 14.5 million, largely due to competitive data packages and the launch of the low-cost Steppa smartphone.<\/p>\n
A concern to MTN should be the decline in blended ARPU \u2013 decreasing by 11.3% to R100.47 quarter to quarter.<\/p>\n
MTN South Africa said it remains committed to seeking a permanent resolution to the recent MTR glide path and asymmetry regulations announced by the Independent Communications Authority of South Africa, which came into effect on 1 April for a period of six months.<\/p>\n
Lethal threat which could crush Vodacom, MTN profits<\/strong><\/a><\/p>\n