Don't Miss

MTN in talks to sell its Nigerian tower business

By BusinessNews Staff on August 9, 2014

MTN Group’s first-half profit increased and data revenue soared while Africa’s largest wireless operator said it is in advanced talks to sell its tower business in Nigeria.

MTN plans to sell 8,640 existing Nigeria towers and 543 under development to an entity that would be managed by a large mobile telecommunications infrastructure provider, the company said.

MTN intends to keep a non-controlling interest of 51 pet cent in the new entity and would enter into a lease agreement for the use of the tower infrastructure.

MTN is seeking transformational deals and has overhauled senior management in its fastest growing markets as it seeks to increase smartphone penetration and boost data revenue outside South Africa, where sales are under pressure from competitors cutting prices and regulators.
Its total subscriber based increased 3.5 per cent to 215 million with 1.7 million net additions in Nigeria, its biggest market with 58.4 million customers. In South Africa, sales declined seven per cent to 19.2 billion rand. An interim dividend of R4.45 was declared.

Data sales were boosted by an expanded third-generation network and an increase in smartphone use across the 22 countries in which it operates,moneyweb.co.za quoted MTN’s Chief Executive Officer, Sifiso Dabengwa to have said in the statement.

Subscribers to MTN Mobile Money – used for payment in areas where banks are limited – grew by 24 per cent to 18.4 million people.
“Voice revenue continued to be impacted by aggressive competition, regulatory pressures and a weakening economic environment in key markets,” Dabengwa said.
“MTN Nigeria delivered a robust performance in line with market expectations, however the South African operation remained under pressure and steps were taken to improve its performance,” he added.

[This Day]

headline