MTN reveals network investment in H1 2016

MTN South Africa
Telecom network operator MTN today revealed the group’s investment in the first six months of 2016.

MTN made investment in the network with a focus on increasing coverage, speed and quality of 3G and LTE in prime locations to support the increasing demand for data services.

Data traffic of MTN increased 135.3 percent, while the effective data tariff declined 46.9 percent. Digital revenue contributed 32.1 percent to total Group data revenue, supported by healthy growth in Mobile Financial Services and an increased uptake of content services.

Capex (Capital expenditure) of MTN increased 15.4 percent to R13,772 million in the first half of 2016.
MTN Capex 2016 guidance
Capex of MTN South Africa was R4,773 million, representing 34.7 percent of total Capex.

Capex in MTN Nigeria amounted to R2,534 million and was impacted by delays in network re-planning. Its Capex in Nigeria was impacted by the limited availability of US dollars.

During H1 2016, MTN rolled out 873 2G sites, 3,660 co-located 3G sites and 2,691 LTE sites. MTN Group also rolled out 1,132 km of fiber and connected 422 sites to fiber.

Meanwhile, MTN Mobile Money registered customers increased 5 percent to 36.5 million across 15 countries and revenue rose by 40.8 percent to R1,289 million. MTN Mobile Money’s active customers increased 18 percent, supported by strong performance from MTN Uganda, MTN Ghana, MTN Rwanda and MTN Benin.

MTN’s subscribers remained flat at 232.6 million in H1 2016 from 31 December 2015. Revenue of MTN increased 1.5 percent to R78,878 million. Data revenue of MTN increased 19.7 percent to R19,849 million. Voice traffic and data traffic increased 7.9 percent and 135.3 percent respectively.