MTN South Africa will be investing more than R300m in a facelift for 430 of its stores. The purpose of the revamp is to enable self-servicing for customers and attract 1.1 million new subscribers in South Africa by the end of 2016.
“We are digitising processes that used to be manual. We want to eliminate queues at our stores and be more customer-centric,” said CEO, Mteto Nyati.
Subscriber numbers in South Africa have dropped by 2.6% in the half-year to June, and margins have declined by 5.5 percentage points. Since October 2015, about 18 million subscribers throughout MTN’s 22 operations were disconnected because of non-compliance with subscriber registration processes.
Furthermore, the Nigerian Communication Commission’s $1.7bn penalty imposed on MTN for missing the deadline to cut off unregistered subscribers has contributed largely to the group’s poor half-yearly performance.
MTN Group executive for investor relations, Nik Kershaw, said that, while profits had declined, the business remained “solid and the dividends will be financed through group cash resources”.
The group also aims to add 8 million new subscribers across its African operations by the end of the financial year.