Telecommunications group MTN expects to increase its subscriber numbers to 200-million by the middle of the year, CEO Sifiso Dabengwa said on Tuesday.

In a copy of a speech delivered at the group’s annual general meeting, he indicated that MTN had increased its subscriber base to 197.4-million in the four months ended April 30.

“The majority of MTN’s operations saw the trend in subscriber growth continue,” he noted.

Further, Dabengwa said MTN expected to deliver improved organic growth in revenue and earnings before interest, tax, depreciation and amortisation (Ebitda) during 2013.

The group’s revenues had grown by 5.6% year-on-year in the four months to end April. Rand reported revenues were up 15% year-on-year and were driven by a weaker rand against the dollar, while local currency revenues were down marginally year-on-year.

MTN Nigeria recorded strong growth in revenue in the first four months of the year, supported by strong growth in subscriber numbers.

Dabengwa said that, despite the larger-than-anticipated cut in termination rates in Nigeria, the group remained comfortable with its guidance on MTN Nigeria’s revenue and Ebitda margin for the full year.

“The main focus for the Nigerian operation is to improve network quality and capacity, to enhance competitiveness and cater for higher usage. We have made good progress on our capital expenditure roll-out programme and continue our constructive dialogue with the regulator, the Nigerian Communications Commission, regarding its recent determination that MTN Nigeria is a dominant operator in that country,” he said.

Meanwhile, MTN South Africa’s performance was impacted by weaker consumer demand and increased competition; however, the operation had maintained its relative revenue share in the first four months of the year.

“MTN South Africa’s revenue for the period was largely underpinned by an increased contribution from data and SMS revenue. Its Ebitda margin declined marginally compared with the same period in 2012 and cost control remains a key focus given the more challenging revenue growth environment.” 

The group’s operations in Iran, Ghana, Sudan and Uganda showed healthy growth in both revenue and subscriber numbers for the period.

Group data and SMS revenue continued to expand strongly in most markets, increasing its contribution to total group revenue to about 18%.

Dabengwa stated that the implementation of cost-optimisation initiatives would remain a key priority for the group in the year ahead. “Finance costs continue to be volatile given the movement in exchange rates. Mitigating the impact of this volatility on reported results remains a focus for management.”

Meanwhile, MTN announced that its CEO Phuthuma Nhleko would also take up the position of chairperson of the group, following Cyril Ramaphosa's resignation as nonexecutive director and chairperson.