MTN
MTN
MTN - MTN Group Limited - Release of subscriber numbers for the quarter ended 31
March 2008
MTN Group Limited
Registration number: 1994/009584/06
ISIN code: ZAE000042164
Share code: MTN
("MTN" or "the Group")
RELEASE OF SUBSCRIBER NUMBERS FOR THE QUARTER ENDED 31 March 2008
MTN Group recorded 68,207,000 subscribers at 31 March 2008. This is an 11%
increase for the quarter from 61,353,000 subscribers recorded at 31 December
2007.
The attached analysis is presented on a regional basis. The South and East
Africa (SEA) region contributed 29% (December 2007: 31%) of the Group total
subscribers and West and Central Africa (WECA) and Middle East and North Africa
(MENA) regions were 45% (December 2007: 46%) and 26% (December 2007: 23%)
respectively.
The SEA region increased its subscriber base by 4% for the quarter. The South
African operation contributed 76% to the region, with subscribers increasing 3%
to 15,169,000 for the quarter ended 31 March 2008. Postpaid showed a healthy
improvement in net connections for the quarter, increasing by 4%. Prepaid growth
was underpinned by the new product offering, MTN Zone, with 3.8m subscribers on
this price plan at the end of March 2008. 128 000 new connections can be
directly attributable to this product offering. Uganda increased its subscriber
base by 2% due to increased competition while Zambia increased its base by 34%
in the same period due to a revised product offering. Rwanda`s increase in
subscribers of 16% for the quarter was driven by a tariff decrease in February
2008.
The WECA region increased its subscriber base by 9% for the quarter. Nigeria
contributed 58% to the region recording an 8% increase in subscribers to
17,766,000. The aggressive network rollout has resulted in 285 base stations
being rolled out during the quarter. This has ensured meaningful progress in
addressing the quality and capacity challenges. Ghana increased its subscriber
base by 9% to 4,398,000 and addressed the quality concerns with the rollout of
182 base stations in the quarter. Cameroon increased subscribers by 12% to
2,855,000 due to increased marketing activities.
The MENA region recorded a 26% increase in subscribers for the quarter mainly
due to strong growth from the start-up operation in Iran, which increased
subscribers by 50% to 9,025,000. The number disclosed at mid March of 9,380,000
incorrectly included unactivated SIM cards given away as part of the buy one get
one free promotion. Strong subscriber growth was achieved in Sudan and
Afghanistan of 13% and 22% respectively, due to relatively low penetration in
these countries.
Q1 ARPU`s are most negatively affected by the YTD nature of the ARPU formula.
MTN South Africa`s blended ARPU decreased by 3% indicating that rising inflation
has not meaningfully affected ARPU to date, however this could have an impact in
the future. Nigeria, Ghana and Cameroon ARPU`s remain robust not withstanding
seasonal trends and increased penetration. Sudan and Afghanistan`s strong
subscriber growth combined with competition and declining tariffs has had a
negative impact on ARPU resulting in declines of 37% and 40% respectively.
Shareholders are advised of a R272 million correction to Ghana`s H2:2007 revenue
and ARPU announced on the 18 March 2008 now reflecting revenue R4,048 million
and an ARPU of $15 for the full year to 31 December 2007.
Subscriber Numbers
Dec-07 Mar-08 Quarter Contribution
% %
Subs Subs
`000 `000
SEA
South Africa * 14,799 15,169 3% 76%
Post-paid 2,493 2,580 4% 13%
Pre-paid 2% 63%
12,288 12,589
Uganda 4% 12%
2,362 2,464
Mascom - Botswana 1% 4%
874 880
Rwanda 16% 4%
652 754
Swaziland 5% 2%
380 398
Zambia 34% 2%
262 352
Sub total 4% 29%
19,329 20,017
WECA
Nigeria 8% 58%
16,511 17,766
Ghana 9% 14%
4,016 4,398
Cameroon 12% 9%
2,559 2,855
Ivory Coast 8% 9%
2,679 2,896
Benin 4% 2%
652 679
Congo - Brazzaville 28% 1%
316 404
Conakry 20% 3%
727 870
Liberia 15% 1%
304 351
Bissau 22% 1%
235 286
Sub total 9% 45%
27,999 30,505
MENA
Syria 2% 18%
3,109 3,158
Iran 50% 51%
6,006 9,025
Yemen 4% 9%
1,507 1,565
Sudan 13% 13%
2,090 2,361
Afghanistan 22% 8%
1,200 1,462
Cyprus 7% 1%
113 120
Sub total 26% 26%
14,025 17,691
Grand Total 11% 100%
61,353 68,213
ARPU
Dec-07 Mar-08 Quarter
%
ARPU ARPU
SEA
South Africa * R149 R144 -3%
Post-paid R396 R406 3%
Pre-paid R92 R90 -2%
Uganda $10 $9 -16%
Mascom - Botswana $15 $13 -15%
Rwanda $12 $11 -11%
Swaziland $18 $16 -14%
Zambia $10 $12 18%
WECA
Nigeria $17 $16 -5%
Ghana $15 $14 -7%
Cameroon $14 $12 -14%
Ivory Coast $13 $11 -13%
Benin $12 $15 20%
Congo - Brazzaville $20 $24 18%
Conakry $15 $10 -30%
Liberia $19 $17 -11%
Bissau $17 $11 -33%
MENA
Syria $20 $18 -8%
Iran $10 $9 -6%
Yemen $9 $8 -11%
Sudan $12 $8 -37%
Afghanistan $11 $7 -40%
Cyprus $39 $44 12%
%`s are based on actual and
not rounded figures
Subscribers are customers who
have participated in a revenue
generating activity in the
last 90 days. ARPU is the
average revenue per subscriber
calculated on a monthly basis.
Revenue includes interconnect
fees and excludes connection
fees and visitor roaming
revenue is divided by the
weighted average subscriber
base over the period.
South Africa subscribers and
ARPU`s now includes community
service payphones into pre-
paid and application providers
into post-paid. Prior periods
have been adjusted for
comparative purposes.
Fairland
23 April 2008
Sponsor
Merrill Lynch South Africa
(Pty) Limited
Date: 23/04/2008 14:10:34 Produced by the JSE SENS Department.
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