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MTN made less revenue on handset sales than Vodacom

Mobile service provider MTN today released its interim financial results for the quarter ending 30 June this year, and while the company made R69 billion in revenue, a number of interesting figures was also released.

A thing that few people realise, is that handset sales for mobile operators go into the billions of rands, and MTN is no exception. According to the company, it made R2.9 billion on selling devices, which accounts for 4.2% of its total revenue.

In comparison, rival Vodacom made R3.5 billion in device revenue, accounting for 23.1% of it’s R19.5 billion group revenue. In terms of growth, MTN saw a decline in revenue change (22.1%), while Vodacom increased sales for the same period by 13.8%.

The biggest driver in overall revenue for the mobile service company is still outgoing voice calls. Of the R69 billion in cash, outgoing voice accounted for almost 60% of that, bringing in R40.9 billion in revenue.

Strike action and other factors contributed to MTN’s revenue decline, but it still managed to increase its subscriber base.

“MTN South Africa delivered an improved performance despite disruptions caused by industrial strike action, which took place between 20 May 2015 and 16 July 2015. The operation increased its subscriber base by 1,8% to 28,5 million supported by attractive promotions and below-the-line campaigns in the pre-paid segment,” it said in a statement.

MTN

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