MTN Group Limited - Company Strategy & Performance Analysis
MTN provides mobile services and comprehensive voice, text messaging, and data services. Key services of the company include data solutions, BlackBerry services, banking services, mobile TV, international roaming, electronic voucher distribution (EVD), caller tunes, MTN Zone, Play and mobile money. The company has a strong presence in South Africa and Nigeria with a total subscriber base of over 93 million in 2016.
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Strong market presence in South Africa & Nigeria
MTN capitalizes on its strong market presence in South Africa and Nigeria. Despite increasing competition, MTN Nigeria continues to lead the mobile market with 39.5% market share. In FY2016, MTN Nigeria had 63.2 million subscriptions, followed by MTN South Africa with 31% market share and 30.8 million mobile subscriptions
Weak competitive position in fixed segment
The company has limited competitive edge in fixed segment, which could be a cause of concern for the company. Although, the company’s fixed subscriptions in South Africa posted a CAGR of 18.4% during 2012-2016, it still lags behind competitors such as Telkom, Neotel, MWEB, and Internet Solutions
Mergers and acquisitions to widen its reach in the market
The company is pursuing inorganic growth strategies to expand its presence in the market. In 2017, MTN Group announced the purchase of a 49% stake in Iranian Net, an Iranian-owned fixed broadband provider for US$36.7 million. The company is expected to make further investments valuing US$231.4 million.