MTN group on Thursday disclosed its interim financial results for first-half of the year 30th June 2017 showing that it has returned to a better revenue performance in the first half of the year, helping the group to move on from a turbulent 2016 that highlighted the risks of its emerging markets strategy.
A New group “BRIGHT” strategy
During the past six months the management team undertook a thorough review of the Group strategy and developed a clear growth plan for MTN that will be arranged under six strategic pillars comprising: Best customer experience; R turns and efficiency focus; IGNITE commercial performance; Growth through data and digital; Hearts and minds; and Technology excellence. Which they now refer to as the “BRIGHT” strategy.
Group revenue in constant currency grew by 6,7% to R64 315 million, underpinned by 10,8% growth in revenue in Nigeria and a 5,2% (on an organic basis) improvement in service revenue growth in South Africa. MTN Uganda, MTN Ghana and MTN Ivory Coast also contributed positively to the Group’s top-line growth reporting similar increase in earning before any taxes or interest deductions (EBITDA) are made.
MTN’s headline earnings came in at UGX 1,048 billion or 212 cents per share, in the six months to end June compared with a loss of UGX 1,316 billion, or 271 cents per share, a year earlier. The results were bolstered by the absence of charges related to a $1.1 billion fine imposed by Nigerian authorities last year in a long-running dispute over unregistered SIM cards.
MTN Uganda interim H1 results: Show growth everywhere
MTN Uganda increased its subscriber base by 5.8% to 11.2 million with a market share of 54.70%, driven by attractive personalized bundled products like SWIFT and WFT and other voice bundles. The MTN Group report also commended MTN Uganda’s superior network quality and effective distribution. The telecom giant has so far successfully registered 89% of the subscriber base under the new SIM registration requirements by UCC ahead of the end-August 2017 deadline that was extend after a Presidential directive.
Total revenue increased by 9.4% to UGX 673 billion, supported by strong growth in data and digital. Data revenue increased by 29,2% to R 286 UGX 77 billion. This was mainly underpinned by an increase in data traffic and good growth in data bundle adoption.