Johannesburg - MTN, Africa’s largest wireless operator, raised its full-year subscriber guidance as growth in its domestic South African market helped offset contraction in its largest market, Nigeria.
The company will add 17.5 million net subscribers this year, compared with previous guidance of 17.25 million, the Johannesburg-based company said in a statement today.
The carrier’s customer base grew 2 percent to 219 million in the three months through September.
“Performance was impacted by continued aggressive competition and stringent regulatory requirements,” chief executive Sifiso Dabengwa said.
“The South African operation delivered an improved performance in the prepaid segment supported by competitive offers while the Nigerian operation faced a challenging regulatory environment resulting in lower-than-expected growth.”
MTN, which operates in more than 20 countries across the Middle East and Africa including Iran and Syria, is seeking acquisitions and has overhauled senior management in its fastest-growing markets as it seeks to increase smartphone penetration and boost data revenue outside South Africa, where sales have been under pressure from competitors and regulators.
The shares have gained 13 percent this year, compared with a 4.2 percent gain on the FTSE/JSE Africa All Share Index. - Bloomberg News