Starcomms Q1 EBITDA dips 32%

9 Jun 2010

Nigerian telecoms operator Starcomms has reported that its revenue for the three months ended 31 March 2010 fell 6.8% year-on-year to NGN7.94 billion (USD51.6 million). Turnover was hit by a 32% decline in average revenue per user (ARPU) from NGN1,002 to NGN680. The fixed-wireless company’s earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 32% year-on-year to NGN1.6 billion in the first quarter of 2010, while operating costs rose 12.4%, mainly due to higher network operating costs and maintenance charges resulting from the significant network expansion; the telco’s infrastructure now covers 22 states, 31 cities and over 170 towns. Net interest expenses more than doubled after the firm converted a USD60 million loan into naira. Starcomms reported a 16% increase in its total active subscribers to 2.66 million, pushing up data revenues as a percentage of total service revenues to 26% in Q1 compared to 20% in the same period a year earlier. Data revenues totalled NGN1.8 million in the quarter, an increase of 21% year-on-year.

Nigeria, Capcom Telecoms (formerly Starcomms)