Yaoundé - 22 May 2019 -

MTN Cameroon witnessed XAF16bln y/y drop in revenues in 2018

MTN Cameroon witnessed XAF16bln y/y drop in revenues in 2018
  • Comments   -   Tuesday, 12 March 2019 16:28

(Business in Cameroon) - In 2018 despite good performances achieved by MTN Cameroon in data (Internet) and Mobile Money, the company witnessed a decline by XAF16 billion in revenues, according to the worksheet in the related financial report issued March 7 this year.

Based on a XAF/ZAR average exchange rate of 1R for XAF45.07 in 2018, and 1R for XAF44.06 in 2017, MTN Cameroon's total revenues in 2018 peaked at R4.549 billion (XAF223.5 billion), against R5.373 billion (XAF239.6 billion) in 2017. This thus reflects a decline by XAF16 billion.

The poor result is attributable to lower voice revenues. In 2018, outgoing voice revenues were R2.778 billion (XAF125.2 billion) against R3.026 billion (XAF133.3 billion) a year earlier. In that segment alone, the company lost XAF8 billion between the two years.

Incoming voice revenues shrunk by XAF6 billion in 2018 to R515 million (XAF23.2 billion), compared to R663 million (XAF29.2 billion) in 2017. Decrease in overall voice revenues cost MTN Cameroon XAF14 billion over the period reviewed.

According to the company’s top management, the ongoing Anglophone crisis significantly impacted revenues. “Our performances are strongly affected by the crisis in the northwest and southwest regions, where MTN holds 60% of telecoms market shares,” Hendrik Kasteel (photo), MTN Cameroon’s MD said during a meeting held January 31 in Douala.

Massey Njiti Bongang, Corporate communications manager at MTN Cameroon, told NewsWatch that in the two Anglophone regions “a total of 206 MTN sites have been ransacked or put out of order ; also, access to them are difficult due to insecurity.

Let’s however note that in 2018, the Cameroonian subsidiary of South African group MTN saw its customer base expand reaching 8 million subscribers, against 7.1 million in 2017, with 800,000 new comings in Q4. This was achieved probably thanks to a new enrolment of some of the 3 million subscribers deactivated by MTN Cameroon, in accordance with the regulations in force regarding the identification of telephone subscribers in the country.

Brice R. Mbodiam

Mags frontpage

Business in Cameroon n75: May 2019

Private Equity emerges in Cameroon

Interview with the Managing Director of Jumia Cameroon

Investir au Cameroun n85: Mai 2019

L’émergence du Private Equity au Cameroun

Rencontre avec le DG de Jumia Cameroun