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MTN s share price jumped by more than 12% after the company reported strong growth in quarterly revenue.
This was despite an overall decline in total subscriber numbers due to new rules on SIM registration in Nigeria.
The company is also still struggling to repatriate more than R4 billion from Nigeria.
MTN s total number of subscribers fell by 1.7 million to 277.9 million in the quarter to end-March, the company said on Wednesday in its quarterly update to end of March.
This was due to the impact of a stringent SIM registration process imposed by Nigerian authorities since last year. Excluding the impact of MTN Nigeria, MTN s total subscribers increased by 3.4 million.
Margins jump as MTN South Africa delivers strong quarterly growth
MTN’s South African subsidiary is flying. MTN Group reported on Wednesday that quarterly profit margins at the unit expanded significantly on the back of solid service revenue growth.
Margin, measured using earnings before interest, tax, depreciation and amortisation (Ebitda), grew to 39.8% from 36.6% a year ago.
“This was achieved through ongoing momentum in commercial execution, market share gains and cost optimisation. All core business units consumer business unit (CBU) prepaid, CBU postpaid, EBU and wholesale showed strong and sustained growth for the quarter,” MTN said.
This was achieved through ongoing momentum in commercial execution, market share gains and cost optimisation
What happened?
The Independent Communications Authority of South Africa’s (Icasa’s) complaints and compliance committee ruled against PostNet in 2019 when it found that PostNet had contravened the Postal Services Act when it transported and delivered these packages and ordered the company to refrain from continuing to offer this service by 17 March 2020.
The South African Express Parcel Application (SAEPA), representing couriers such as DHL, FedEx and RAM, joined PostNet as co-applicants.
Consumers are worried
The Post Office’s insistence on being the only entity that can deliver these packages is worrisome for consumers who regard the Post Office as the absolute last resort, due to its reputation of not delivering mail in good time.
Icasa backs post office’s push to limit parcel deliveries by couriers
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Most Read BL PREMIUM 04 May 2021 - 05:10 Bekezela Phakathi
As a court battle looms, SA’s communications regulator is backing the push by the SA Post Office (Sapo) to stop private courier companies from delivering small parcels, a move that could devastate a R20bn industry. The Independent Communications Authority of SA’s [Icasa’s] mandate is to implement what the law requires, and we are doing exactly that, spokesperson Paseka Maleka told Business Day on Monday, saying the law allowed private couriers to only deliver food items in the 1kg or less category.
Danger of a mobile network crunch in South Africa mybroadband.co.za - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from mybroadband.co.za Daily Mail and Mail on Sunday newspapers.