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Why MTN GROUP Share ended 3.7% down yesterday



Johannesburg-Sunburst Africa, the MTN Group was the biggest looser on the JSE yesterday following the release of its quarterly market updates for the period ended September 30th 3014. The group ended down 3.79% following disappointing information from its third quarter market updates which shown constrained growth in Nigeria due to regulatory challenges.

Table 1: MTN Group Share Performance on October 23rd 2014.


Despite these odds, the MTN Group remains a leader in the emerging market mobile sector, connecting approximately 219 million people in 22 countries across Africa and the Middle East. MTN is at the forefront of global technological changes, delivering a bold, new Digital World to our customers. MTN Group records 219,2 million subscribers

the company still has right fundamentals, with continuous growth in subscribers- subscriber growth of 2,0% to 219 million subscribers quarter-on-quarter (QoQ).Data revenue increased by 34% year-to-date (YTD), now contributing 17,8% to total revenue. Registered Mobile Money subscribers of 22,2 million, up 20,2% QoQ. South African operation regaining traction with 1,4 million net additions for the quarter. Constrained subscriber growth in Nigeria as a result of regulatory pressure. Iran local currency data revenue up 102, 8% YTD, following the launch of 3G services.

According to the Group CEO, Sifiso Dabengwa, the MTN reported encouraging results for the third quarter, delivering subscriber growth of 2, 0% QoQ, however, performance was impacted by continued aggressive competition and stringent regulatory requirements. The South African operation delivered an improved performance in the prepaid segment supported by competitive offers while the Nigerian operation faced a challenging regulatory environment resulting in lower-than-expected growth. Group net addition
subscriber guidance for the full year has increased marginally to 17, 5 million. The Group continued to benefit from good growth in non-voice revenue driven by data and Mobile Money across key markets. Data revenue increased by 34, 4% year-on-year and now contributes 17, % of total revenue. Good progress was also achieved in the optimisation of our operating model, particularly in reducing costs and the monetisation of assets with the announcement of the tower transaction in Nigeria during the quarter.

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