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Blog : 24 October 2016 (MTN Subscribers update)
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We take a look at embatteled cellphone service provider, MTN's latest subscriber numbers update. They have been through a very tough period recently with MTN Nigeria (their biggest market) being handed a hefty fine for not deactivating sim cards after a government order to do so. MTN's share price has been taking a pounding and is trading at multiple year lows.
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Updated Subscriber Numbers
Below a breakdown of subscriber numbers per country as at end quarter 3 2016 for MTN
No surprise that Nigeria is still MTN's biggest subscriber base. With almost 23.5% of all MTN's subscribers coming from Nigeria. The second biggest base for MTN is in their home country South Africa, that makes up around 20% of their subscriber numbers. And a surprise to some readers might be their third biggest market in terms of subscriber numbers, Iran, making up almost 19% of their total subscriber numbers.
While number of subscribers is one thing, the average rate per users (ARPU) is quiet another. The pie chart below looks at the ARPU per country, in order to identify which country's users spends more money with MTN.
While number of subscribers is one thing, the average rate per users (ARPU) is quiet another. The pie chart below looks at the ARPU per country, in order to identify which country's users spends more money with MTN.
Based on the pie chart above it's clear the biggest spending countries on MTN's network is Cyprus with users spending an average of $19.68, Congo B with $8.01 and Swaziland with $7.41. Sadly for MTN though these countries make up a very small part of their overall subscriber numbers, even if they are the biggest spenders on the MTN network. MTN should be looking to extract those kinds of ARPU's from South Africa, Nigeria and Iran. If they can do that MTN would make a lot more money than what they are currently doing. Encouraging for MTN is the fact that data traffic increased 142% over the same period last month. As more and more users get smart phones and use more data.
Another side note is the fact that MTN has started repatriating money from Iran (which it was not allowed to do in the past as there were sanctions in place against Iran). Speaking of repatriating funds. The Nigerian government is accussing MTN of illegally repatriating funds back to South Africa. A claim MTN Nigeria strongly denies. And this cloud hanging over MTN is part of the reason that their share price is not gaining any upwards momentum. But to investors. It is always darkest before dawn.
Another side note is the fact that MTN has started repatriating money from Iran (which it was not allowed to do in the past as there were sanctions in place against Iran). Speaking of repatriating funds. The Nigerian government is accussing MTN of illegally repatriating funds back to South Africa. A claim MTN Nigeria strongly denies. And this cloud hanging over MTN is part of the reason that their share price is not gaining any upwards momentum. But to investors. It is always darkest before dawn.