|
Getting your Trinity Audio player ready...
|
Operating in a telecoms industry increasingly facing higher operating costs, dwindling revenue per user and investor pullback, MTN Nigeria, the largely South African-owned mobile operator, yesterday reported revenues of N793.614 billion in its 2013 business year, Wale Goodluck, the company’s corporate executive, said in a presentation to the media yesterday.
The amount was just a marginal 5.31 percent rise from the N753.578 billion recorded in 2012 and just 4.70 percent above revenues posted in 2011, figures which underline a possible struggle for a sector that had broken many records and is touted as a leading light for privatisation since it was opened to private participation in 2001.
But the small rise in revenues came against a 19.66 percent increase in total subscriber numbers between 2012 and 2013, from 47.441 million to 56.766 million. The company was, however, able to keep expenses in check at N312.473 billion in 2013, down from N313.907 billion in 2012. In 2011, MTN’s expenses stood at N289.908 billion.
But very significant and, therefore, highlighting the precarious state of power infrastructure in the country is diesel-related cost for powering generators used in its operations. In 2013, the company spent 12 percent of its total operating expenses on diesel, which amounted to N34 billion.
With average revenue per user dwindling, thus signalling a near saturation in voice revenue accretion, the industry appears now poised to push data revenue frontiers for growth.
“Everybody is looking for LTE spectrum (4G),” Goodluck said, as a way of boosting data penetration. “Broadband is the future.” He added that there was challenge moving bandwidth from the shores to the hinterland where it is most needed. The right policy and enabling environment are required to provide what he called “proper ecosystem for broadband development” in the country, citing the Memorandum of Understanding between Lagos State and the industry as a good way to make progress.
Goodluck canvassed for an environment which encourages growth through industry self-regulation, noting that innovation was required to take the telecommunication industry to the next level.
He said MTN remains committed to the emerging broadband future and “will continue to aggressively drive the provision of competitive and best-in-class communications services to its esteemed customers”.
Since inception in 2001, the financial highlights show that MTN has paid N1.23 trillion or $7.07 billion to governments in taxes and other levies.
A breakdown of some of the payments shows that in the 12 years to December 2013, MTN paid company income tax of N330.235 billion to the Federal Inland Revenue Service; N224.439 billion in Value Added Tax (VAT); N191.087 billion as withholding tax, and N44.845 billion as education tax.
In 2013, the company’s total capital expenditure (CAPEX) in its Nigerian operations stood at N231.037 billion. Out of this amount, it spent N216.960 billion on property, plant and equipment, while intangible assets accounted for N14.077 billion.
The company is bullish on its cost-efficiency profile in the face of falling revenue per user. But Goodluck said MTN Nigeria was leveraging on technology and was looking at the data business in a broader perspective as it can help drive a whole range of people lifestyle items, including healthcare – mobile health solutions, telemedicine; educational solutions, amongst others.
“This whole data business is open for expansive use if we have the spectrum, as well as the policy environment. We can roll out a wide range of data-based solutions fairly quickly,” he said.
MTN was also committed to co-location, which allows for telcos sharing services, Goodluck said. He also said the company was de-emphasising non-core competent areas and farming out these services to providers with the competence to do so.
Meanwhile, South Africa’s telecommunications operator, MTN on Wednesday said revenues grew 12 percent last year, driven by increasing subscribers and helped by a weak rand. Revenues reached R136.50 billion ($12.71 billion) for the year and total subscribers were up 9.8 percent at 207.8 million, led by strong growth of 20 percent in Africa’s most populous country, Nigeria.
The group, which operates in 22 countries, said revenues in Nigeria rose 24.5 percent even as the South African rand weakened in value against the Nigerian naira during the period. Uganda, Ghana and Cameroon also reported healthy revenue growth.
“For the year as a whole, the rand declined by 18.3 percent on average against the United States (US) dollar,” the company said in its annual results statement.
As a result, the earnings reported in rand were boosted by currency effects. The Johannesburg-listed firm said data services were the key driver of revenue growth, with South Africa and Nigeria the largest contributors. The two countries accounted for 77.9 percent of data revenue growth.
“This is a significant factor, as data replaces voice,” said Sifiso Dabengwa, chief executive officer of the company.
The number of data users increased by 37.3 percent to 80.6 million, boosted by increased smartphone ownership.
BY OUR REPORTER
