JOHANNESBURG, May 6 (Reuters) – Customers of MTN (MTNJ.J: Quote, Profile, Research, Stock Buzz)
spent less on calls in the first quarter, the company said,
prompting a 2-percent fall in the shares of Africa’s largest
mobile phone operator.
Average revenue per user (ARPU), a key industry measure, was
hit by intense competition and currency swings, falling 10
percent in South Africa and 6 percent in its key Nigeria market.
ARPU in Syria, which has been battered by political unrest,
slid 12 percent and fell 5 percent in Ghana.
“Increasing competition might be a concern and (there is)
declining ARPU in some markets,” said a telecoms analyst who
asked not to be identified.
The stronger rand will also mean less of a benefit from
overseas revenues, he said.
MTN said it added more than 5.7 million users in the first
quarter, bringing the group total to 147.3 million, and raised
its 2011 subscriber growth target by 9 percent to 18.4 million.
Shares in MTN were down 2.0 percent at 130.64 rand by 1321
GMT, underperforming Johannesburg’s Top-40 index .JTOPI which
edged up 0.6 percent.
The Africa and Middle East-focused operator, which faces
competition in Nigeria from rivals Bharti Airtel (BRTI.BO: Quote, Profile, Research, Stock Buzz) and
Etisalat ETEL.AD, operates in several tough markets.
Guinea’s government has seized assets belonging to MTN and
is taking over the running of the company in a row over payment
of a 15 million euro ($21.80 million) fee. MTN said on Thursday
it was negotiating with that government. [ID:nLDE7441MF]
The South African unit, which competes with its larger rival
Vodacom (VODJ.J: Quote, Profile, Research, Stock Buzz) and other two smaller operators, recorded a 1.9
percent rise in users to 19.2 million.
(Reporting by Gugulakhe Lourie; editing by David Cowell)