Share

MTN growth flat as competitors up their game

Johannesburg - MTN [JSE:MTN] on Thursday reported a slower-than-expected 1% increase in subscribers for the third quarter, hit by strong competition in key markets such as Nigeria and Iran.

MTN, Africa's largest mobile operator, said in a statement it had 203.8 million subscribers at the end of September, from 201.5 million three months earlier.

MTN, which operates in 22 countries in Africa and the Middle East, said the number of subscribers in Nigeria, Africa's most populous country, increased by 0.6% to 55.6 million.

"The third quarter has been characterised by lower-than-anticipated subscriber growth following ongoing price competition and subscriber registration requirements across a number of markets," CEO Sifiso Dabengwa said in a statement.

MTN said conditions would remain challenging in its home market of South Africa, where it faces tough competition from local rivals Vodacom and unlisted Cell C.

The  telecoms regulator said this month it planned to cut by 75% the fees mobile operators can charge rivals to use their network.

Analysts have said the change would be a blow to MTN's revenue. The company said it continued to discuss the proposed changes with the regulator.

MTN said the number of South African subscribers increased by just under 1% to 25.2 million.

Iran saw a decrease of 1.7% to 41.3 million, hurt by a weakening economy and an increased push by MTN's main competitor.

Shares of MTN fell 1.2% to R198.78, underperforming a 0.3% increase in the benchmark Top 40 index.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.02
-0.6%
Rand - Pound
24.00
-0.4%
Rand - Euro
20.53
-0.3%
Rand - Aus dollar
12.35
-0.0%
Rand - Yen
0.13
-0.6%
Platinum
901.20
+0.5%
Palladium
997.97
-0.4%
Gold
2,210.69
+0.7%
Silver
24.71
+0.3%
Brent Crude
86.09
-0.2%
Top 40
68,075
+0.6%
All Share
74,269
+0.5%
Resource 10
56,834
+2.1%
Industrial 25
103,553
+0.3%
Financial 15
16,490
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders