MTN is among 90 companies vying for one of two mobile network
licences in Southeast Asia’s Myanmar as the company searches for growth
in new markets.
MTN has been successful in operating in volatile
countries, some of which have endured widespread social and political
unrest. The company ventured into far-flung territories such as Iran and
Nigeria and over the years some of these markets have provided steady
revenue and subscriber growth.
MTN has recently faced pressure in
markets such as Syria and Iran, although its operations in those
countries continue to grow. The main pressure stems from sanctions
imposed on these countries by the US. This has made it difficult for MTN
to expand its networks in those countries.
According to MTN CEO
Sifiso Dabengwa, Myanmar has a population of 60-million, but mobile
phone penetration is sitting at only 5%. "I think it would be an
excellent opportunity."
However, he warned, it could be a
challenging venture as Myanmar is different to the markets to which MTN
is accustomed. The Myanmar government is reportedly targeting a mobile
penetration rate of about 80% by 2016 through the new licences.
Mr
Dabengwa on Wednesday said the company continued to work closely with
all the relevant authorities to manage US and European Union sanctions
against Iran and Syria. In Syria, MTN said, the crisis had deepened, and
economic activity in a number of towns and commercial centres had been
disrupted. This has affected network coverage and revenues.
In
Iran, MTN said, the rollout of some projects had been slower than
expected because of delayed equipment delivery and the effect of
sanctions on the importation of certain equipment.
MTN on
Wednesday reported full-year earnings that missed analysts’ estimates,
weighed down by foreign-exchange losses and increased spending on
networks. Adjusted earnings per share climbed to R10.89 from R10.69 a
year earlier. That missed the R11.67 median estimate of 12 analysts
surveyed by Bloomberg.
Revenue rose 10.9% to R135.1bn with the
majority of operations, excluding Nigeria, delivering strong organic
growth. The Nigerian market was hit by significant tariff declines amid
heightened competition.
Headline earnings per share were up by 1.9% to 1,089.1c, slowed down by foreign exchange losses.
source: BDLive
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