MTN Uganda’s subscriber base declines from 11 to 8.9 million, Mobile Money growth is still unstoppable

MTN subscribers

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[/blockquote]Uganda’s telecom giant has been strongly hit by UCC’s SIM card registration process that has seen their subscriber base tumble from 11 million to 8.9 million. The disconnection of 3.7 million subscribers in the fourth quarter last year affected customers who did not fully comply with regulatory subscriber registration requirements. This was revealed during the MTN Group Limited audited consolidated annual financial results for the year ended 31 December 2015 and despite the dip in subscriber numbers, the carrier still remains number one in Uganda. The Group’s subscriber base increased by 4.1% to 232.5 million, despite the disconnection of 10.4 million subscribers to ensure compliance with subscriber regulatory registration requirements in Nigeria and Uganda. MTN Uganda has however said they will be releasing more information about these results and new subscriber numbers tomorrow.

Nigeria and Uganda disconnected 6.7 million and 3.7 subscribers respectively. Subscriber growth was achieved through attractive segmented below-the-line campaigns and an increased focus on the customer experience enabling the Group to maintain its leadership position in 15 markets. The Group has also recorded strong data revenues which are up by 30% which was mainly boosted by South Africa and Nigeria.

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Uganda leads in Mobile Money growth in Africa

MTN Mobile Money revenue increased by 55,8% and it now accounts for 16,8% of Uganda’s total revenue and 6,0% and 6,2% of each of Ghana and Rwanda’s total revenues respectively. MTN Mobile Money customers increased by 56,3% to 34,7 million across 15 countries. The focus was on the migration of the MTN Mobile Money platform to a more agile Ericsson Wallet platform enabling converged campaigns and incentives, establishing dedicated functions across operations and providing niche services where MTN has a competitive advantage.

Unstable Exchange Rates

The MTN Group revenue remained flat at R146 353 million ($ 9.4 billion). Movements in average exchange rates had a limited impact on reported revenue. Whilst the rand weakened 12.9% against the US dollar it strengthened 2,4% against the Nigerian naira, 11.1% against the Ghanaian cedi, 2.4% against the Central African franc, 5.6% against the Ugandan shilling and 40.2% against the Syrian pound. The large opco cluster’s revenue remained relatively flat on a reported basis and increased 5.5%*, supported by strong growth in Ghana and Sudan. This was, however, offset by a reduction in revenue in Cameroon and slower growth in Ivory Coast and Uganda.