Infos Business of Friday, 7 August 2015

Source: La Nouvelle Expression

MTN Cameroon subscribers increase by 7.3%

MTN-Cameroun MTN-Cameroun

In a statement presenting the results of its subsidiaries, the MTN Group announced an increase of 7.3% of its client base in Cameroon; about 10.4 million subscribers.

However, the first half of the year 2015 was made of ups and down in the Cameroon subsidiary of the South African giant, MTN Cameroon Telecoms.

On the other hand, it presented a downward turnover by 0.4% (299.9 billion FCfa in 2014)in Cameroon. These results, were derived from tests in the performance of the telecoms company since its acquisition of 3G / 4G license in Cameroon (75 billion CFA francs), is proof that social networks like WhatsApp, Viber, etc have an influence on the revenues as compared to the voice (calls) sector. They decreased by 7.7% in the first half of 2015.

MTN explained these results with several factors; the aggressive competition on the market, which resulted in the decrease of tariffs; the exclusivity on the 3G to the Cameroon subsidiary of the Vietnamese telecoms operator (Nexttel); and the investments made in equipment, after its concession agreement with the Cameroonian State on the operation of 3G technology.

The syndicated 60 billion FCfa loan obtained from six local banks (Bicec, Scb, Sg-C, Ecobank and Standard Chartered Bank) would enable the mobile operator improve the quality of service during the five years.

The rise in Data

Whereas the call sector realizes a significant decline in their incomes, the MTN Group welcomed the results achieved in the data sector (Internet data).

According to the report, revenues from MTN data in Cameroon rose by 11.5% in six months. It is a sign that the group strategy announced in the first quarter in Johannesburg worked. Dduring the presentation of the financial performance of its subsidiaries in Africa, the Group had announced that they counted on the 3 G (253 sites) to increase revenues at the data sector.

The results of MTN Cameroon are not really disturbing. Looking at the performances of other markets of the group in Africa, including South Africa and Nigeria, the first two branches of the group in terms of turnover, we noticed that due to the difficult situation in Nigeria and the decline in sales of mobile terminals in South Africa, the group did not put up well. Moreover, aside from results recorded in South Africa and Nigeria, the Group continued to lose 6.5% of its turnover in other African subsidiaries.