SENS Note - 29 April 2010

MTN increases subscribers

MTN Group recorded 123 580 000 subscribers at 31 March 2010. This is a 7% increase for the quarter from 116 025 000 subscribers recorded at 31 December 2009. The attached analysis is presented on a regional basis. The three regions' subscribers continue to grow at marginally different rates although, when compared to December 2009, the relative subscriber contribution between the regions remains unchanged. South and East Africa (SEA) region contributed 22% (December 2009: 23%) of the group's total subscribers while West and Central Africa (WECA) and Middle East and North Africa (MENA) contributed 46% (December 2009: 46%) and 32% (December 2009: 32%), respectively. The SEA region increased its subscriber base by 4% for the quarter. The South African operation contributes 60% to the region's subscribers, increasing 2.2% to 16,424,000 for the quarter ended 31 March 2010. The positive net additions of 358 000 signal a more normalized growth pattern following the effect of the RICA implementation in the second half of 2009. The growth was mainly attributable to increased brand awareness including the "Ayoba" campaign and the continued success of the "Mahala" campaign. Uganda increased its subscriber base by 8% to 5 615 000 despite aggressive competition. The WECA region increased its subscriber base by 7% for the quarter. The strong growth in the region was primarily due to growth in Nigeria which contributes 59% to the region's subscribers. Nigeria recorded an 8% increase in its subscriber base to 33 301 000 as network quality and the continued success of the distribution framework allowed for a competitive advantage. Ghana increased its subscriber base by 5% to 8 431 000 within an increasingly competitive market. This is due to improved network quality combined with a strong brand position. Cameroon and Cote d`Ivoire increased their subscriber bases by 2% and 4% to 4 443 000 and 4 590 000, respectively. The MENA region recorded an 8% increase in subscribers for the quarter. The growth within the region was largely due to the Iran operation, which contributes 64% to the region's subscribers and increased its subscribers by 9% to 25 386 000. Iran's continued subscriber growth is due to acquisition promotions that remain compelling. Syria increased its subscribers marginally by 1% to 4 297 000. MTN South Africa's blended average revenue per a user ("ARPU") increased by 7% to R155. This was due to a 9% increase in prepaid ARPU to R108. Nigeria and Ghana's ARPU declined each by 10%, to USD11 and USD7, respectively as a result of increased penetration into lower market segments and seasonal trends. Notwithstanding high growth rates and seasonal trends, Iran's ARPU remain relatively stable at USD8.

Click here for original article