MTN reported improved revenue and profit for the first half of 2013, despite “a challenging operating environment… highly competitive mobile markets and regulatory pressures”.

The Africa-focused operator group saw average voice tariffs across its markets decline 29.5 per cent year-on-year. However, investment in its network infrastructure and “robust subscriber growth” means it is well placed for improved organic growth.

Revenue for the six months ending 30 June was ZAR65.2 billion ($6.5 billion), an increase of 9.8 per cent. Profit after tax was ZAR14.5 billion, an improvement on the ZAR12.2 billion in 2012.

The Africa-focused operator group ended the period with 201.5 million subscribers, a 6.5 per cent increase year-on-year.

Nigeria and South Africa were the biggest revenue generators during the period, with Nigeria on ZAR22.3 billion (up 15.8 per cent) and South Africa on ZAR20.1 billion (down 1.4 per cent).

South Africa saw a slight decline in its user base from 25.4 million six months ago to 25.0 million, while Nigeria added 7.8 million subscribers during the period, giving it a total of 55.2 million.

The group was subsequently hit by the loss of 3.2 million subscribers in Nigeria as the result of a mandatory subscriber registration programme.

Nigeria was also impacted by a 40 per cent reduction in mobile termination rates from April, while “a weak consumer environment” and aggressive competition hit South Africa.

MTN’s other large operators (Large OpCo Cluster) generated ZAR18.3 billion revenue, down slightly from the ZAR19.2 reported in H1 2012.

Iran was the biggest market in this group with MTN Irancell reporting revenue of ZAR4.4 billion, down from ZAR6.5 billion a year earlier. It had 42.0 million subscribers.

Other large operator businesses include Ghana (12.6 million subscribers), Sudan (8.4 million), Uganda (8.0 million), Cameroon (7.6 million), Ivory Coast (6.6 million) and Syria (5.5 million).

The group’s Small OpCo Cluster generated revenue of ZAR9.1 billion for the first half of the year. This group encompasses Liberia, Guinea Bissau, Benin, Cyprus, Yemen, Afghanistan, Rwanda, Congo-Brazzaville, Zambia and Botswana.

Voice traffic volume across the group increased by 26.2 per cent, with voice revenue increasing by 7.9 per cent. Voice revenue accounted for 63.7 per cent of revenue, down from 64.8 per cent in the first half of 2012.

Data subscribers increased by 29.5 per cent to 65.4 million, with traffic up 55.7 per cent. This increase was driven by extended 3G coverage and an increasing number of data-enabled devices. MTN invested ZAR12.8 billion in its network during the period, adding 2,130 2G and 800 3G sites.

For the rest of the year, MTN expects to see improved year-on-year organic growth in revenue and expects to add a total of 21.1 million subscribers during the whole of 2013.

MTN is the ninth-largest operator group globally with an estimated 157.6 million connections, according to GSMA Intelligence. This figure excludes MTN Irancell, which is not majority-owned by MTN.