The fighting that broke out in Sudan in April affected the network availability of MTN, while there was a lack of basic goods, fuel shortage and difficulties in securing cash as banks closed amid the fighting.
“Network availability has also been affected, with levels dipping as a result of grid power shortages and challenges in refilling fuel tanks,” Africa’s largest mobile operator said in its results for the three months to end-March. MTN is valued at R216.7bn on the JSE.
“Additionally, power failures at infrastructure providers are causing interruptions to international links, impacting international calls, roaming services and ISP services,” it added.
Hundreds have died and thousands have been displaced as a result of the conflict between the Sudanese army and the paramilitary Rapid Support Forces (RSF). The head of the army, Abdel Fattah al-Burhan, and RSF head Mohamed Hamdan Dagalo are vying for control of the country after the two men staged a coup together in October 2021.
Sudan accounted for 3.2% of MTN’s total subscribers and 3.3% of group core earnings (Ebitda) in the latest reporting period.
Bloomberg reported in April, shortly after the fighting started, that the state telecommunications regulator at one stage ordered MTN to block itsn internet services.
In terms of the group’s overall performance, the number of MTN subscribers advanced 5.2% year on year to 290.6-million in the first quarter of the new financial year, along with 11.9% more active data subscribers and data traffic rising close to a fifth.
Group service revenue rose 15.6% to R52.8bn and group earnings 8.6% R24.3bn, but the annual revenue per user has declined 4.9% in SA to R88.65.
Nigeria is the company’s biggest country by service revenue, accounting for 41.3%, followed by SA (19.2%).
Looking ahead, MTN expects load-shedding to further hamper its SA businesses and hopes postpaid tariff increases, which became effective in April, will improve top-line growth as it works to improve its network after power cuts was one of the key contributors to SA’s core earnings being 6.5% lower.
Part of its plan includes extra battery capacity to allow at least six hours of battery life and a mix of generators.
“MTN SA is also piloting solar solutions on a limited number of sites. In addition, where there are higher risks of theft or vandalism, additional security solutions are being deployed, and active infrastructure changes (including replacement of copper cabling with aluminium) are being implemented,” the company said.
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