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Capex increased 1,2%* to R2 166 million with a
focus on 3G and LTE network coverage and quality.
Enhanced data throughput speeds, together with
transmission link capacity, improved customer
experience. During the period the operation rolled
out 463 co-located 3G sites and 267 LTE sites.
Since its inception in 2006, the MTN Cameroon
Foundation has opened close to 40 multimedia
centres, providing digital access to at least 60 000
students and 4 000 teachers. In 2016, the foundation
opened 10 of these centres.
Initial recovery in the second half
MTN Ivory Coast
increased its subscriber base by
13,6% to 9,5 million mainly as a result of strong
churn management.
Total revenue decreased by 2,0%* because of lower
outgoing voice revenue impacted by a drop in the
effective tariff. This was partially offset by a 18,4%*
increase in data revenue, which contributed 19% to
total revenue. This was mainly as a result of
increased data usage supported by WiMax swaps
to LTE, residential offerings as well as LTE time
division duplex (TDD) devices. The number of
smartphones on the network increased by over
100% to 2,1 million. The increase in the net promoter
score was largely as a result of our “Perfect 10”
initiatives launched in the operation to boost
customer experience.
The operation’s EBITDA margin declined by 1,7 pp
to 32,5% mainly driven by provision for doubtful
debts.
Capex increased by over 100%* to R1 721 million
with a strong focus on network coverage and
densification. During the period the operation rolled
out 512 co-located 3G sites and 343 LTE sites.
In recognition of the volunteering work that MTNers
in Ivory Coast carried out in communities around the
country in 2016, MTN Ivory Coast won the annual
Group President and CEO’s award for its 21 Days of
Y’ello Care. The MTN Ivory Coast Foundation
continued to install and refurbish multimedia rooms
in schools across the country and also partnered
with the government and UNESCO on a literacy
programme.
Looking ahead in WECA
We expect net additions in WECA of 4,750 million
after 5,325 million new subscribers signed up in
2016. Most of the new subscribers are expected to
come from Cameroon (1,25 million) followed by
1 million from Nigeria and 750 000 from Ghana.
We have authorised capital expenditure of
R16,314 billion in WECA in 2017 after spending
R17,325 billion in 2016. The single largest destination
for the 2017 capex in WECA is Nigeria, at
R9,543 billion, followed by Ghana at R2,164 billion
and Ivory Coast at R1,690 billion.
MTN Nigeria continues to make progress with its
preparations to list its shares on the Nigerian Stock
Exchange. In addition to setting up a management
task team, we have appointed a lead issuing house,
joint transaction advisors, global co-ordinators and
legal advisors. While MTN remains committed to the
listing, it is subject to suitable market circumstances
and macro-economic conditions, and the
appropriate approvals and certainty from relevant
regulators and other stakeholders.
MTN Ghana is working with relevant regulators on its
localisation transaction, which is expected to be
completed during the course of 2017.
In Nigeria, we expect to further improve our
competitive position despite a weaker economic
environment. Network quality remains a priority. This
improvement in competitive position and network
quality and capacity, smartphone penetration and
increased focus on new revenue streams are
expected to support upper single-digit top line
growth***. We will continue to work closely with
vendors to alleviate the current challenges with
regard to the availability of US dollars. However, we
expect the depreciation of the naira against the
US dollar to negatively impact the EBITDA margin in
2017*** and 2018***. However, IGNITE initiatives to
be implemented over the next two years will partly
offset the drag on reported EBITDA by 15 to 20%***
by 2018.
* Constant currency (organic) information.
** Reported – includes hyperinflation and the relating goodwill
impairment, tower profits, the Nigeria fine and the MTN
Zakhele Futhi impact.
*** The forward-looking financial information disclosed in this
integrated report has not been reviewed or audited or
otherwise
reported on by our external
joint auditors.
MTN Group Limited
Integrated Report 2016
51
PERFORMANCE
DETAILS