(Business in Cameroon) - The competition between the Cameroonian subsidiaries of the telecommunication groups Orange (France) and MTN (South Africa), turned into the former’s advantage during H1, 2018. Indeed, during the period under review, the French group’s aggregate income was €146 million while its South African rival announces ZAR2.4 billion (about €145 million).

MTN admits that during that period, the market conditions were a bit tougher as for the first time in ages, the number of its clients considered as active dropped to 6.6 million. This figure is about the same for Orange Cameroon (6.58 million clients reported) but, unlike its rival, the French telecommunication operator has never reached 10 million subscribers. 

In addition to the drop in its customer base, MTN reports that it was affected by the shortcomings of internet suspension, but, we can not say whether it was in the whole country or just in the English speaking regions where the socio-political crisis continues.

Under these circumstances, its Earnings before interest, taxes, depreciation, and amortization (EBITDA) was ZAR457 million (€27.8 million). This figure is not available as far as Orange Cameroon is concerned because the motherhouse does not publish its disaggregated figures however, it is not that sure if it performed better in that section. Indeed, the group’s EBITDA was €746 million in Africa and the Middle East, a cluster in which Cameroon’s market represents just a small portion.

MTN Group reaffirms its commitment to the Cameroonian market and the management is happy for the resolution of the regulatory problems with local authorities. Let’s note however that though the local market still presents opportunities for investments on the networks, the group’s capital expenditures during H1, 2018 was just ZAR101 million against ZAR700 million during the same period in 2017.

Idriss Linge