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Solid performance supported by
superior data network
MTN Irancell (joint venture-equity accounted,
49%)
delivered a strong performance despite
regulatory pressure on data tariffs. The number of
subscribers increased by 3,2% to 47,6 million mainly
as a result of competitive segmented voice and
data offerings, including attractive data bundles,
and a superior quality 3G and LTE network. Improved
customer experience resulted in a higher net
promoter score of 22%.
Total revenue increased by 12,8%*, driven by
increased data revenue growth. Outgoing voice
revenue declined marginally by 0,7%*, cannibalised
by data services. Data revenue increased by
58,8%*, underpinned by optimisation of data
bundles, modernisation of 2G and 3G sites and
expansion of the LTE network.
Smartphone penetration in Iran remains the highest
across our footprint with MTN Irancell recording
26,1 million smartphones on the network at the end
of the year. Data revenue contributed 42% to total
revenue while outgoing voice revenue contributed
37%. Digital revenue contributed 30% to data
revenue, supported by an increase in local content-
based usage.
The EBITDA margin decreased by 2,5 percentage
points to 39,0% as a result of increased transmission
costs attributable to additional capacity
requirements. Capex for the period increased by
15,0%* to R5 138 million (49%) as the operation
added 2 717 co-located 3G sites and 2 210 LTE
sites.
Looking ahead in Iran
We forecast net additions of 850 000 in Iran in 2017.
We expect to spend R5 396 million (49%) in capex.
Going forward, the repatriation of monies from
MTN Irancell is expected to be normalised. We
expect growth in the Iranian economy following the
easing of sanctions to offer significant opportunities
to expand our services, particularly in the digital
space, and to benefit further from MTN’s strong
position and the youthful population in the country.
The Group’s results are presented on a regional basis in line with
the Group’s new operational structure. This is comprised of SEA,
WECA and MENA and their respective underlying operations.
The SEA region includes: South Africa, Uganda, Zambia,
Rwanda,
South
Sudan,
Botswana
(joint
venture-equity
accounted), Swaziland (joint venture-equity accounted) and
Business Group. The WECA region includes: Nigeria, Ghana,
Cameroon, Ivory Coast, Benin, Congo Brazzaville, Liberia,
Guinea Conakry and Guinea Bissau. The MENA region includes:
Iran (joint venture-equity accounted), Syria, Sudan, Yemen,
Afghanistan and Cyprus.
Although Iran, Botswana and Swaziland form part of their
respective regions geographically and operationally, they are
excluded from their respective regional results due to being
equity accounted for by the Group.
* 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
53
PERFORMANCE
DETAILS