MTN predicts pressure on profit margins in Nigeria, South Africa
From what it perceived as growing weak exchange rate system in its two major markets, Nigeria and South Africa, MTN expects its group earnings to be under serious pressure for the rest of the year.
In a statement yesterday, the mobile network operator said the weak economic growth in its key markets and tough competition could also negatively impact performance.
Besides, according to bdlive.co.za, the telecommunications firm disclosed that it grew its total subscriber base by one per cent to 230.3 million over the year to end-April despite a seven per cent drop in Nigerian customers and 11 per cent drop in Ugandan customers to comply with stricter registration requirements in the countries.
Speaking at the telecommunications firm yearly general meeting yesterday in Johannesburg, South Africa, Executive Chairman, Phuthuma Nhleko, disclosed that in its home market, MTN grew subscriber numbers by seven per cent over the year, while in Ghana, it achieved 20 per cent subscriber growth.