Nigeria continues to drive MTN’s profitability
Nigeria drove MTN’s growth in the first four months of this year according to reports at the company’s annual general meeting in Johannesburg, on Tuesday. The group’s double-digit revenue growth was mainly as a result of increase in the company’s subscriber base in Nigeria during the period. MTN added 1.1 million subscribers last month alone in Nigeria, after the withdrawal of the ban on the sale of SIM cards. The additional customers added 2 percent to MTN’s total subscriber base.
However, the story is not the same in the MTN Group’s second-largest market, South Africa, where it recorded negative revenue growth during the first four months of the year. Over the period, MTN SA customer base reduced to 24.9 million after cutting off about 1-million inactive SIM cards. Rival, Cell C added 3-million customers during the period. MTN SA will even face more intense competition after the ongoing merger of Vodacom and Neotel is completed.
With over 50 million subscribers in Nigeria, the Nigerian subsidiary is by far the largest unit of the group. In addition to Nigeria and South Africa, MTN also operate in 19 other countries including: Iran, Ghana, Cameroon, Uganda, Syria and Sudan.