MTN Nigeria to Hit 2m Subscriber Mark by Sept
MTN Nigeria is ready to hit two million subscriber mark in the next few weeks following the results of the company released last week in South Africa.
Although over 1,960,000 subscriber mark was recorded as at the end of the financial year March 2004, company sources informed THISDAY that hitting the two million subscriber mark would be a forgone conclusion by September 30th when another half year result is due. Already, a substantial progress has been made in that regard, the company source said.
The 1.9 Million announced in South Africa Thursday represents a 90 percent increase over the subscriber base as at the end of its financial year in March 2003.
The information released by the parent company, MTN Group South Africa, showed that average revenue per user in Nigeria decreased from USD 57 to USD 51, as a result of the lowering of call tariffs from December 2003, deeper penetration into the market and depreciation of the Naira against the US Dollar.
The results from South Africa indicate that MTN Nigeria has increased the number of its base stations from 478 as at March 31 2003 to 839 by March 31 2004. MTN Nigeria also increased the number of its operational switches from 11 to 16 during the same period.
The report showed that in order to meet the strong demand for its services in Nigeria, MTN Nigeria had recourse to secure a USD 345 million medium term project finance facility so that it can aggressively pursue its network rollout plans.
The MTN Group results showed a 94per cent increase to Rand 4312 million, driven by strong performances across its operations. Subscriber base for the group rose by 42 per cent to over 9.5 million subscribers.
The total capital expenditure for the MTN Group rose to R5048 million
with MTN Nigeria accounting for about 67 percent of the capital expenditure.
In announcing the results, MTN Group disclosed that a joint venture has been initiated with MTN Nigeria to explore electronic airtime top up alternatives.
Phuthuma Nhleko CEO of MTN Group is optimistic that the Group's international operations will in the year ahead maintain positive subscriber base and revenue growth. This optimism is " underpinned by the significant ongoing capital investment into network rollout, particularly in Nigeria".
At this time when Nigeria is seeking to attract foreign direct investment, the fact that MTN Nigeria can record a profit is indeed a very positive thing. It confirms the fact that Nigeria is a viable investment destination and that foreign investment can thrive if given the right level of commitment and real investment.
Mr. Adrian Wood comments that "The credit for MTNN's success belongs to the various stakeholders whose foresight brought about liberalization of the telecoms industry, as well as our loyal customers who continue to give us unwavering support.
With the recent announcement of MTN Nigeria Foundation the company has set a new pace in Corporate Social Responsibility (CSR). It is the first time a telecoms company will put aside part of its annual profits towards implementing CSR projects, an initiative which perhaps other corporations could emulate.
Launched in 1994, the MTN Group celebrates ten years as a leading provider of cellular and communications services in Africa and is listed on the JSE Securities Exchange South Africa under the share code: "MTN". The Group encompasses MTN South Africa, MTN International and its Strategic Investments division which hosts Orbicom, Airborn and MTN Network Solutions. As at end 31 March 2004, the MTN Group recorded almost ten million subscribers across the continent where it provides cellular, satellite and Internet access services to 14 African countries.
The Group has invested in six GSM cellular networks in Africa, including South Africa, Swaziland, Rwanda, Uganda, Cameroon and Nigeria.
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