JSE-listed mobile phone operator, MTN, is set to move into the digital space in an effort to offer more services to its clients.
Addressing the firm’s annual general meeting on Tuesday, Sifiso Ndabengwa, the MTN CEO, did not disclose details of the move to digital space.
But he said the firm is going to “leverage MTN’s inherent strength in adjacent industries.”
“This will create a distinct customer experience and transform our operating model,” Ndabengwa said.
“We expect to deliver improved organic growth in both revenue and EBITDA in 2013 and anticipate reaching the milestone of 200 million subscribers by the middle of the year.”
In the first quarter of this year, many of the firm’s operations experienced a continuing upsurge in subscriber numbers.
These numbers lifted 4 percent during the four months to April 30 2013, touching 197.4 million throughout all its geographies.
Group revenues surged 5.6 percent year- on-year. MTN Nigeria posted robust growth in revenues, buoyed by growth in subscriber numbers.
“Despite the larger-than-anticipated cut in termination rates in Nigeria, we remain comfortable with our guidance on MTN Nigeria’s revenue and EBITDA margin for the full year,” Ndabengwa told shareholders at the AGM.
“The main focus for the Nigerian operation is to improve network quality and capacity to enhance competitiveness and cater for higher usage.”
MTN has moved well in its capital expenditure rollout package, continuing with its mutually beneficial talks with the authorities.
It is talking to the Nigerian Communications Commission (NCC) regarding the commission’s ruling recently that MTN Nigeria is a domineering operator in that country.
“MTN South Africa’s performance was impacted by weaker consumer demand and increased competition, however the operation maintained its relative revenue share in the first four months of the year,” he said.
“MTN South Africa’s revenue for the period was largely underpinned by an increased contribution from data and SMS revenue. Its EBITDA margin declined marginally compared to the same period in 2012 and cost control remains a key focus given the more challenging revenue growth environment.”
Ndabengwa said the firm’s operations in Iran, Ghana, Sudan and Uganda had experienced wholesome growth in revenue and subscriber numbers.
