ZCZC
BCN-15
SAFRICA-TELECOM-EARNINGS-MTN
South African telecom MTN gains clients despite scandals
JOHANNESBURG, March 8, 2019 (BSS/AFP) – South African telecommunications
giant MTN on Thursday said its subscriber base grew by 16 million customers
last year to 233 million, good news for the embattled mobile operator.
MTN faces regulatory issues in some of the countries it operates in,
including the largest, Nigeria.
A dispute erupted there when the central bank claimed that MTN had
violated foreign exchange regulations by failing to obtain approval before
sending funds overseas.
MTN holds operating licences in 21 countries in Africa and the Middle
East.
“The markets in which we operate remain under-penetrated in terms of
mobile services,” MTN said in a statement as the group presented its 2018
results.
“As we benefit from Africa’s young and growing population, we expect to
maintain growth in the core voice business over the medium term.”
The jump in the number of subscribers pushed voice revenue up by 7.3
percent to 82.2 billion rand ($5.8 billion), the group said in a statement.
Overall group revenue for 2018 increased by 10.2 percent, it added.
MTN Ghana revenue grew 23 percent, MTN South Africa climbed 4.2 percent
while MTN Uganda rose 8.9 percent.
In Nigeria, MTN’s subscriber base expanded by 11.3 percent from December
2017 to 58.2 million, supporting double-digit growth in service and data
revenue.
The mobile-phone company, which will be attending a court hearing into an
alleged unpaid tax bill of about $2 billion this month, assured shareholders
that plans to list on the Nigerian stock exchange in the first half of 2019
were on track.
This year four executives, including chief executive Wim Vanhelleputte,
were deported from Uganda for “national security” reasons, according to
Kampala police.
In Iran, MTN has been accused of paying bribes to South African and
Iranian officials to secure a licence there in 2005.
This year the company plans to launch its own music streaming and instant
messaging applications, and extend its mobile money business from 14 to 18
countries.
BSS/AFP/HR/0950