MTN Group, Africa’s largest telecom group, said on Wednesday it has topped 150-million subscribers across 21 countries, as it continues to expand in fast-growing developing markets.
The South African company also cautioned that revenue for the four months to end-April was only marginally higher, as a result of the stronger rand.
MTN said in a statement it added 7.4-million subscribers in the first four months of the year, representing growth of 5%. The company said its subscriber base has now topped 150-million.
The stronger rand — which averaged 6.86 to the dollar during the period, compared with 7.48 — a year earlier, meant that revenue only improved slightly.
A stronger rand is a negative for companies that do business overseas, as it eats into profits when earnings from abroad are brought home.
The company also said it was negatively impacted by political unrest in Côte d’Ivoire, and to a lesser extent, Yemen and Syria.
Had there been no movement in the exchange rate, EBITDA — or earnings before interest, tax, depreciation and amortisation — would have been “meaningfully higher,” the company said.
Revenue is still primarily driven by voice, although non-voice revenue is growing, MTN said. — Reuters