MTN South Africa is losing customers

2 November 2018

Telecoms

MTN Group’s financial update for the quarter ending 30 September 2018 shows that its South African operation is losing clients.

MTN South Africa ended the third quarter with 29.5 million customers, down from 30.2 million at the end of June and 30.9 million at the end of September 2017. The losses came on the prepaid side, not from more lucrative contract clients.

At the end of the third quarter, MTN South Africa had 23.7 million prepaid users, down 3.4% quarter on quarter, while post-paid subscribers rose by 2.1%. It had 2.8 million telemetry subscribers.

In a weak economy, consumers felt the pressure of a higher VAT rate, becoming increasingly price sensitive

The South African operation turned in year-on-year service revenue growth of 3%, “edging closer” to a medium-term target closer to 5%.

Data and digital revenue increased by 12.5% and 9.9% respectively, while outgoing voice revenue declined by 8.4%.

“In a weak economy, consumers felt the pressure of a higher VAT rate, becoming increasingly price sensitive,” MTN said in notes alongside the quarterly update. “Prepaid service revenue increased 0.5% and post-paid service revenue increased by 1.9%.”

It said the South African business “took steps to transform data prices”, introducing “attracting social media bundles and “customer value management offerings”. Read the full article on TechCentral here.