MTN Profit Rises as Data Revenue Offsets Nigerian Weakness

MTN Group Limited, Africa’s largest wireless carrier, said full-year profit gained 8.9 per cent as data revenue growth and a recovery in South Africa helped offset lower-than-expected sales in Nigeria, its biggest market.

Headline earnings per share, which exclude one-time items, were 15.36 rand ($1.31) in 2014, Bloomberg quoted the Johannesburg-based company to have disclosed in a statement on Wednesday.

Sales increased 6.4 per cent to 146 billion rand. Subscriber numbers are forecast to reach 240.9 million in 2015 across MTN’s 22 markets in Africa and the Middle East, an increase of 17.5 million.

“The group continued to benefit from encouraging growth in non-voice revenue, driven by various data initiatives, including mobile money,” the company said. “MTN South Africa’s performance was in line with our expectations and provided clear evidence in the second half of a successful turnaround.”

MTN has been exploring acquisitions as it seeks to increase smart phone penetration and boost data revenue including mobile banking outside South Africa, where it trails crosstown rival Vodacom Group Ltd. in terms of subscriber numbers. The company is facing price competition and regulatory pressure in its biggest markets.

“MTN Nigeria’s performance was below expectations, impacted largely by regulatory determinations and economic pressures as well as operational challenges,” the company said. “Some level of uncertainty remains with regards to the implications of the oil price and currency fluctuations, which may lead to slower economic growth.” (Thisdaylive)