MTN released its annual results for 2021 on Wednesday, reporting 21.7% increased wholesale revenue in its South African division.<\/p>\n
The revenue increase was supported by MTN South Africa\u2019s national roaming deal with Cell C, and solid growth in the mobile virtual network operator (MVNO) portfolio, the company reported.<\/p>\n
MTN SA said it recognised R2.7 billion in national roaming revenue from Cell C, up 33.9% from just under R2 billion last year.<\/p>\n
\u201cA balance of R236 million remained unrecognised, as at 31 December 2021,\u201d MTN stated.<\/p>\n
\u201cRevenue recognition remains on a cash basis as Cell C works towards its recapitalisation.\u201d<\/p>\n
MTN explained that Cell C entered into a settlement agreement in February 2021 specifying the repayment schedule for long-outstanding amounts.<\/p>\n
However, Cell C is facing significant challenges<\/strong><\/a> and has not been able to pay its debts.<\/p>\n Cell C\u2019s creditors have given the company grace on its repayments to allow it to pursue a recapitalisation plan.<\/p>\n \u201cCell C continues to work on its recapitalisation programme which, if adequately resolved, would result in a change in the Group\u2019s accounting treatment of Cell C revenues, back to an accounting methodology of recognising revenue as performance obligations are satisfied,\u201d MTN stated.<\/p>\n MTN said that overall, it had not recognised R448 million in revenue from Cell C relating to satisfied performance obligations.<\/p>\n In addition to its roaming deal with Cell C, MTN surprised the market last year when it announced a roaming deal with Telkom<\/strong><\/a>.<\/p>\n The agreement came into effect on 1 November 2021.<\/p>\n MTN SA said it would provide 2G, 3G and 4G services to Telkom.<\/p>\n \u201cThis agreement aligns with the Group\u2019s strategy to monetise the investments it has made in networks and continue to build on the network as a service platform, where MTN SA is a key driver,\u201d the company stated.<\/p>\n In line with this strategy, MTN SA said its MVNO business continues to grow.<\/p>\n \u201cAt the end of 2021, there were over 550k active customers, from MVNO partners connected to the MTN network,\u201d it said.<\/p>\n \u201cMTN SA continues to invest in the expansion of its network capacity to further enable infrastructure sharing.\u201d<\/p>\n MTN South Africa recorded a jump in wholesale revenue thanks to the national roaming agreement it has with Cell C.<\/p>\n","protected":false},"author":15,"featured_media":373372,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[41906,14],"tags":[355,35,20557,42,61873,109],"class_list":["post-436768","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-telecoms","category-cellular","tag-cell-c","tag-headline","tag-mobile-virtual-network-operator-mvno","tag-mtn","tag-roaming-agreements","tag-telkom"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/436768"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=436768"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/436768\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/373372"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=436768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=436768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=436768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nNow read: MTN\u2019s big mobile data traffic growth in South Africa<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"