MTN swung back to profit during 2017, though its subscriber base continued to dwindle as regulation hit customer numbers in several markets.

At end December 2017, the South Africa-headquartered group’s user base stood at 217 million subscribers, down from 240 million at end-2016. It lost 13.2 million subscribers during Q4 alone.

The company noted “reclassification of subscribers” and regulation had hit the numbers, pointing to the forced disconnection of 3 million users in Cameroon and 750,000 in Uganda, alongside losses reported in Nigeria in Q3.

Amid issues in several markets, MTN said it was actively assessing its portfolio to ensure its units were “an appropriate strategic and operational fit taking into account demographics, regional synergies and business and regulatory environments”.

Although details on its review were limited, the operator noted it could lead to some “shifts” in its portfolio in the medium term. It is also assessing the performance of units deemed to be in conflict markets to ensure they remain self-funded.

“We are closely monitoring those operations that are not cash flow positive and will take appropriate action as required.”

In expected business structure changes, MTN said it would complete an IPO of its Nigeria business during 2018 and list a minority stake in its Ghana unit on its local stock exchange: terms of its 4G licence in the country requires the company to take on board local investors.

Profit turnaround
As the company predicted in January, it overturned a net loss of ZAR3.1 billion ($260 million) in 2016 (it’s first annual loss in 20 years) with a profit of ZAR4.5 billion in 2017. Its 2016 earnings were affected by payments associated with a hefty fine in Nigeria.

Although performance improved, the company added its 2017 figures were negatively impacted by a strong performance of its home currency.

MTN CEO Rob Shuter (pictured) praised the company’s progress amid “difficult economic conditions”, and regulatory and operational challenges.

Top line growth “was driven by robust growth in data revenue (on a constant currency basis), supported by the combination of improving customer service and more stable and competitive networks”.

Digital revenue growth was fuelled by services including mobile money and rich-media, though Shuter noted growth “slowed in the second half as we optimised our value-added services subscription business.”