MTN network, Africa’s
largest wireless operator, has cut its full-year forecast for subscriber
numbers after more than five million Nigerian customers were disconnected
following a review into how they were able to register for phone contracts.
The company will add
14.8 million net subscribers this year, compared with a previous forecast of
16.75 million, Johannesburg-based MTN said in a statement yesterday.
According to Bloomberg,
the carrier’s customer base grew 0.9 per cent to 233 million in the three
months through September compared with the previous quarter.
MTN, which operates in
more than 20 countries across the Middle East and Africa, had 5.1 million
subscribers cut off in Nigeria, its biggest market, at the end of August
following checks on personal documents.
The company is also
facing “ongoing regulatory restrictions” related to its market-leading position
in Africa’s most populous country, spokesman Nik Kershaw said by phone.
About 3.4 million of
the customers have been reconnected, the company said.
MTN shares gained 2.4
per cent to 186.45 rand as of 3:31 p.m. in Johannesburg, valuing the company at
345 billion rand ($25.2 billion).
The stock is down 16
per cent this year, compared with a 14 per cent gain for Vodacom Group Ltd, its
cross-town competitor.
While the loss of
Nigerian customers is a short-term setback, “it does point to a tough
regulatory environment,” Steve Minnaar, a money-manager at Cape Town-based Abax
Investment, said by phone.
“They have been
struggling with the regulator for many years in the Nigerian environment.”
Customers using
contracts in South Africa fell 2.6 per cent to 5.2 million, due in part to “low
availability of handsets,” MTN said.
The total subscriber
numbers in Africa’s most industrialised economy gained two per cent to 29
million, due to a rise in pre-paid customers.
No comments:
Post a Comment