MTN released a quarterly update for the period ended 30 September 2014.

Highlights
Satisfactory subscriber growth of 2% 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.

Operational review - MTN Group
This commentary includes an analysis of the performance of MTN South Africa, MTN Nigeria and the Group's large opco cluster. A detailed schedule of subscriber numbers and quarterly average revenue per user (ARPU) data for all 22 operations is also included. ARPU is based on actual quarterly ARPU and is disclosed in both US dollars and local currency.

MTN South Africa showed good progress from the first half of the year. The operation increased its subscriber base by 5.7% to 26.7 million, adding 1.4 million net additions for the quarter, mainly attributable to competitive offers such as "rush hour" and "talk free" in the prepaid segment. As a result, the prepaid subscriber base increased by 7.1% to 21.2 million, with encouraging growth in minutes of use during the quarter. The postpaid segment delivered a satisfactory performance and grew its subscribers marginally to 5.5 million, 2 million of which were telemetry SIMs.

Data revenue growth was muted, largely impacted by a 17.9% decrease in the average effective rate per megabyte. Data now contributes 22.7% to the operation's total revenue. Data subscribers increased to 16.1 million and data usage grew by 55.9% supported by attractive data promotions and improved network quality. In addition to improving revenue growth, MTN South Africa continues to focus on various cost containment initiatives and on optimising its operating model. Blended ARPU decreased by 4.6% to R89.26.

MTN Nigeria reported a marginal decline in its subscribers to 58.4 million, largely impacted by regulatory restrictions relating to the "dominant operator" ruling and continued unrest in the northern region during the quarter. While this muted subscriber performance is expected to impact revenue growth for the second half of the year, by mid-September the operation had resolved a number of issues with the regulator resulting in an improvement in subscriber growth.

Local currency data revenue continued to grow strongly, increasing by 26.4% YTD and now contributes 17.8% to total revenue. This was mainly attributable to the growth in data users, which increased by 31.7% YTD and the introduction of a low-cost MTN smartphone during the quarter. The operation successfully sold 58 300 of such devices in Q3. The Mobile Money offering, Diamond Yellow, gained encouraging momentum while the launch of other innovative data products including MTN Yello Health, MTN Music plus MTN Yello, Cover, MTN Biz Plus and MTN SME plus will further assist MTN Nigeria's growth in the digital space. Local currency ARPU declined by 0.1%.

Other operations: Large opco cluster
MTN Irancell delivered a solid performance despite the high mobile penetration rate and aggressive competition, increasing its subscriber base by 2% to 43.5 million. The operation continues to focus on innovative offers to address subscriber acquisition and retention. Local currency data revenue increased by 102.8% YTD and now contributes 17.1% to total revenue. This was mainly attributable by the launch of 3G services and attractive bundled data packages. MTN Irancell added 1 291 3G sites and 70 4G sites YTD. Local currency ARPU increased by 1.1%.

MTN Ghana's performance was satisfactory despite a weak macro-economic environment. The operation grew its subscribers marginally by 0,8% to 13,5 million impacted by aggressive competition during the quarter. Local currency data revenue increased by 156,0% YTD and now contributes 18,3% to total revenue. The strong growth in data was a result of improved 3G coverage and innovative data offerings. Mobile Money showed positive momentum, recording 3,0 million registered customers at the end of the quarter. MTN Ghana continues to focus on cost optimisation as the weakening of the Ghanaian cedi against the US dollar has resulted in pressure on fuel costs and other US dollar denominated expenses. Local currency ARPU increased by 0,4% for the quarter.

MTN Cameroon delivered a solid performance, increasing its subscribers by 9.7% to 11.2 million. This was attributable to segmented bonus offerings for voice and data and a well- executed churn and dormancy management programme. Local currency data revenue increased by 45.2% YTD, contributing 8.2% to total revenue. The operation ended the quarter with 1.5 million Mobile Money customers and continued to focus on increasing its active subscribers and transaction volumes. Mobile Money revenue more than doubled YoY. A third mobile operator launched commercially in September 2014 with an exclusive 3G licence. Local currency ARPU increased by 3.7%.

MTN Ivory Coast maintained market share notwithstanding a marginal decline in its subscriber base to 7.7 million. This was mainly due to seasonality and aggressive bonus promotions offered by competitors during the quarter. The operation made good progress in expanding 3G coverage and improving its Mobile Money subscriber activity. Local currency data revenue increased by 60.8% YTD and now contributes 10.1% to total revenue and Mobile Money gained momentum, increasing its subscribers to 2.2 million. Mobile Money revenue now exceeds USD1 million per month. Local currency ARPU declined by 1.9%.

MTN Uganda surpassed 10 million subscribers, increasing its base by 2.6% to 10.1 million in a competitive market. Local currency data revenue increased by 37.7% YTD and now contributes 24.4% to total revenue. This was attributable to improved 3G coverage, customer internet education forums and Mobile Money. Mobile Money subscriber activity continued to advance with approximately 18% of airtime sales distributed through Mobile Money. At the end of September, MTN Uganda recorded 6,8 million Mobile Money subscribers. Local currency ARPU increased by 1.3%.

MTN Sudan reported a net reduction of 361 000 subscribers largely impacted by a weak economy and subscriber registration requirements. The operation continued to enhance churn and dormancy management initiatives and launched its Mobile Money offering during the quarter. These initiatives are expected to support positive subscriber growth for the remainder of the year. Local currency data revenue increased by 101.2% YTD, contributing 12.1% to total revenue, mainly attributable to attractive data bundles. Local currency ARPU decreased by 1%.

MTN Syria continues to operate in extremely challenging conditions reporting a marginal increase in subscribers to 5.7 million. Some of the key challenges remain security, transmission, power outages and insufficient fuel supply. Local currency data revenue continued to gain momentum and increased by 124.1% YTD, while local currency ARPU declined by 2.4%.

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