The telecoms industry news is invariably filled with items regarding latest products and services, current and future trends, ongoing price wars and country regulatory requirements. These industry developments are bound to have an impact on the performances and results of major service providers within the industry. This is evident in the release of recent results by MTN and Neotel.
MTN released its 3rd quarter results last month. These show a marked decrease in the company’s growth. CEO and president, Sifiso Dabengwa, has attributed this to, “lower than anticipated subscriber growth, following ongoing price competition and subscriber registration requirements across a number of markets.” In their January to September 2013 review, MTN highlighted its focus on segmented voice and data tariffs, as well as improving network quality. Whilst MTN has seen growth in its subscriber base, it expects the rest of its financial year to continue to be “challenging.” Regulations have slowed down the company’s stronghold in Nigeria and Iran, but MTN is optimistic that revenue will continue to grow.
Neotel announced a 21% revenue increase for the period April to September 2013. The telecoms provider has catapulted into profitability for the first time since it was founded 7 years ago. Much of the news surrounding Neotel has been with regards to a potential acquisition by Vodacom, which CEO Sunil Joshi believes would be positive for the company, as it would enable increased capital, products and services, and ultimately the enhanced satisfaction of the consumer. Neotel’s EBITDA has shown growth of 100% year-on-year from 2012. The company has presented increases in revenue in all business units.
These results are an interesting reflection of the happenings on the telecoms landscape. One can’t help but feel that the industry is on the brink of change, and that the results of the major players within the industry are bound to be impacted accordingly.