MTN grows subscriber base 22% to 141.6 million in 2010; revenues increase 3%

9 Mar 2011

South Africa-based MTN Group has unveiled its financial results for the twelve months ended 31 December 2010, reporting that annual group revenue increased by 3% to ZAR114.7 billion (USD16.6 billion) year-on-year. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 10% to ZAR50.5 billion during 2010, whilst operational profit increased 11% to ZAR35.2 billion. The West and Central African (WECA) region topped MTN’s revenue charts in 2010, generating ZAR49.9 billion during the twelve months ending 31 December. The South and East African (SEA) region contributed ZAR42.5 billion of the total, whilst the Middle East and North African (MENA) operations weighed in with ZAR22.0 billion.

In operational terms, MTN announced a 22% increase in its consolidated customer base, which grew to 141.6 million subscribers by end-December 2010. The South and East African (SEA) region, which contributed 22% of the group’s total customers, increased its subscriber base to 31.89 million during 2010. MTN’s domestic unit, MTN South Africa, continues to provide the bulk of subscribers in the SEA region, growing its customer base rose to 18.84 million in 2010, a net addition of 2.77 million customers. MTN credits the South African unit’s success to subscriber growth in the pre-paid segment, chiefly driven by its MTN Zone offer, which allows subscribers access to a discounted call rate if they are in an area experiencing a low volume of MTN traffic.

The West and Central African (WECA) region, which contributed 46% of the group’s subscribers grew its customer base to 64.45 million during 2010. Nigeria – MTN’s largest single market – grew its subscriber base to 36.67 million, representing net additions of 7.84 million customers year-on-year. MTN credits the increased subscriber base to network quality, improved brand perception and stable, effective tariffs. The Middle East and North African (MENA) region, which accounts for the remaining 32% of MTN’s consolidated subscriber base, increased its customer figures to 45.26 million. MTN’s growth within the region was mainly due to its Iranian operation, MTN Irancell, which increased its subscriber base by 28% to 29.74 million during 2010. MTN credits the subscriber gains to segmented tariff plans, enhanced seasonal promotions and improved brand awareness.

South Africa, MTN Group, MTN Irancell, MTN Nigeria, MTN South Africa