MTN
MTN
MTN - MTN Group Limited - Subscriber and average revenue per user (ARPU)
numbers for the quarter ended 31 March 2012
MTN Group Limited
(Incorporated in the Republic of South Africa)
Registration Number 1994/009584/06
Share code: MTN
ISIN: ZAE000042164
("MTN Group")
SUBSCRIBER AND AVERAGE REVENUE PER USER (ARPU) NUMBERS FOR THE QUARTER ENDED
31 MARCH 2012
MTN Group recorded 170 573 000 subscribers at 31 March 2012. This is a 3,7%
increase for the quarter from 164 501 000 subscribers recorded at 31 December
2011. The Group delivered a satisfactory performance notwithstanding
continued high levels of competition in key markets.
Consistent with the new management structure, this commentary includes
detailed analysis of each of the five larger operations (MTN South Africa,
MTN Nigeria, MTN Irancell, MTN Ghana and MTN Syria) and highlights from the
rest of the operations. However, a schedule of subscriber and ARPU numbers
for all operations is also given.
MTN South Africa contributed 13,3% to Group subscribers and delivered a sound
performance in a mature market. It increased its subscriber base 3,2% for the
quarter. The postpaid segment performed well, increasing its subscriber base
by 4,4% mainly due to attractive data propositions. The prepaid segment
increased its subscriber base by 2,9% despite increased competition. This was
attributable to competitive promotions including the continued success of MTN
Zone through improved informal distribution channels. Blended ARPU declined
7,9% mainly due to a reduction in interconnect rates to 56 cents in March
2012 from 73 cents previously. Postpaid and prepaid ARPU decreased 6,7% and
8,1% respectively.
MTN Nigeria contributed 25,1% to Group subscribers and increased its
subscriber base by 3,0% for the quarter. Net connections of 1 258 000 were
negatively impacted by a nationwide strike in January and aggressive
competition. Slower net connections at the beginning of the year resulted in
a marginal loss of MTN`s share of the market. However, corrective measures
enabled the operation to increase network capacity and improve net
connections later in the quarter. No clarity has yet been provided on the
deadline for SIM registration. The harmonizing of MTN Nigeria`s database of
registered subscribers with the NCC database is in progress. Local currency
ARPU declined by 1,1% for the quarter.
MTN Irancell contributed 21,6% to Group subscribers. On a proportional basis,
reflecting MTN`s 49% ownership, its contribution was 11,9%. It continued to
deliver a solid performance growing its subscriber base by 6,2% and
increasing its share of the market for the quarter. This was mainly due to
attractive value propositions including 2-in-1 SIM packs and various seasonal
promotions. At the end of March, MTN Irancell recorded 213 000 WiMax
customers. Local currency ARPU increased 3,7% due to improved network
quality. The third mobile operator is expected to launch commercially in the
second quarter of 2012.
MTN Ghana contributed 6,1% to Group subscribers, increasing its subscribers
2,3% for the quarter and maintaining market share in a competitive
environment. This was due to attractive promotions as well as the
implementation of a regional structure to better manage sales and marketing.
Local currency ARPU increased by 3,4% mainly because of revised value
propositions. The deadline for SIM registration was 1 March 2012 resulting in
a disconnection of 21 237 subscribers representing 2% of the subscriber base.
The sixth mobile operator had its commercial launch at the end of April 2012.
MTN Syria contributed 3,3% to Group subscribers. Its performance continued to
be hampered by civil unrest in the country, which resulted in a reduction of
subscriber numbers of 23 000 subscribers and a decline in local currency ARPU
of 8,5%.
The rest of MTN`s operations contributed 30,5% to Group subscribers,
representing an increase in users of 3,5%. MTN Uganda increased its
subscriber base by 1,2% as the market slowed due to SIM registration. MTN
Sudan continued to show good progress, increasing its subscriber base by 5,3%
for the quarter attributable to attractive value propositions and improved
distribution. MTN Cameroon also performed well and increased its subscriber
base by 9,8%. This was attributable to a more aggressive informal
distribution strategy and attractive value propositions. MTN Cote d`Ivoire
increased its subscriber base marginally by 0,5% because of the removal of
200 000 non revenue generating SIM cards and lower gross connections due to
SIM registration.
The Group continues to prioritise key initiatives to better manage the
business as consumer trends evolve and competition intensifies. Data and
related products and services continued to gain momentum. Data, including
SMS, contributes 14,4% to revenue, driven mainly by MTN South Africa. Mobile
Money has now been launched in 13 countries. At the end of March 2012, MTN
had 6,2 million Mobile Money subscribers. Initiatives to optimise costs
continue to be rolled out and the centralized procurement initiative is
showing solid progress.
Network quality and capacity remains a key imperative for the Group. The
majority of the operations continued to aggressively rollout network and
achieved satisfactory progress for the quarter.
Revised 2012 net additions guidance
December 2011 March 2012 (000`)
(000`)
South Africa 2,900 2,900
Nigeria 4,000 4,000
Iran 4,000 5,000
Ghana 950 950
Syria 450 450
Rest 8,000 8,000
Total 20,300 21,300
Subscriber numbers
Dec-11 Mar-12 Change Contributi
on
Subs `000 Subs `000
South Africa 22,033 22,735 3.2% 13.3%
Post-paid 3,834 4,004 4.4% 2.3%
Pre-paid 18,199 18,731 2.9% 11.0%
Nigeria 41,641 42,899 3.0% 25.1%
Iran (100%) 34,681 36,831 6.2% 21.6%
Ghana 10,156 10,394 2.3% 6.1%
Syria 5,716 5,693 -0.4% 3.3%
Sub total 114,227 118,552 3.8% 69.5%
Rest of
operations
Uganda 7,629 7,725 1.2% 4.5%
Sudan 6,013 *6,334 5.3% 3.7%
Cameroon 5,800 6,367 9.8% 3.7%
Cote d`Ivoire 6,305 6,337 0.5% 3.7%
Afghanistan 4,768 4,952 3.9% 2.9%
Yemen 3,880 4,035 4.0% 2.4%
Zambia 2,704 2,946 9.0% 1.7%
Rwanda 2,889 2,899 0.4% 1.7%
Benin 2,399 2,488 3.7% 1.5%
Guinea-Conakry 1,987 1,977 -0.5% 1.2%
Congo - 1,672 1,634 -2.2% 1.0%
Brazzaville
Botswana 1,584 1,603 1.2% 0.9%
Liberia 1,006 1,045 3.9% 0.6%
Swaziland 767 788 2.8% 0.5%
Guinea-Bissau 591 608 2.9% 0.4%
Cyprus 280 283 0.8% 0.2%
Sub total 50,274 52,022 3.5% 30.5%
Total subscribers 164,501 170,573 3.7% 100.0%
ARPU
Dec-11 Mar-12 % LC %
change** change
YTD ARPU YTD ARPU
US$
South Africa (R) 134.2 123.5 -7.9% -7.9%
Post-paid (R) 286.3 267.2 -6.7% -6.7%
Pre-paid (R) 101.4 93.2 -8.1% -8.1%
Nigeria 9.7 9.4 -3.5% -1.1%
Iran 7.9 7.5 -5.8% 3.7%
Ghana 7.0 6.6 -5.6% 3.4%
Syria 13.9 10.4 -25.7% -8.5%
Rest of
operations
Uganda 3.50 3.99 14.1% 8.5%
Sudan 4.5 *3.7 -16.8% -11.5%
Cameroon 7.3 6.4 -11.5% -6.7%
Cote d`Ivoire 6.0 6.1 1.8% 7.7%
Afghanistan 4.7 4.5 -4.4% 1.2%
Yemen 6.1 6.2 2.0% -2.6%
Zambia 5.2 4.4 -14.2% -8.1%
Rwanda 3.8 3.8 0.6% 1.8%
Benin 8.8 8.0 -9.1% -3.5%
Guinea-Conakry 4.8 5.6 17.4% 18.2%
Congo - 9.8 10.3 4.8% 11.3%
Brazzaville
Botswana 10.0 8.5 -14.8% -9.2%
Liberia 9.9 9.2 -7.6% -7.6%
Swaziland 13.57 10.83 -20.2% -14.3%
Guinea-Bissau 6.5 5.4 -17.0% -11.7%
Cyprus 32.3 27.0 -16.4% -11.2%
Subscribers are customers who have participated in a revenue-generating
activity in the last 90 days. ARPU is the monthly weighted average revenue
per subscriber. Revenue includes interconnect fees and excludes connection
fees and visitor roaming revenue, and this is divided by the weighted average
subscriber base over the period.
South Africa subscribers and ARPUs include community service payphones into
pre-paid and application providers into post-paid.
* Does not include South Sudan.
** %s are based on actual and not rounded figures
Fairland
4 May 2012
Sponsor: Deutsche Securities (SA) (Proprietary) Limited
Date: 04/05/2012 12:14:00 Produced by the JSE SENS Department.
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