Here's how much money MTN made from Cell C
MTN released its annual results for 2021 on Wednesday, reporting 21.7% increased wholesale revenue in its South African division. The revenue increase was supported by MTN South Africa’s national roaming deal with Cell C, and solid growth in the mobile virtual network operator (MVNO) portfolio, the company reported. MTN SA said it recognised R2.7 billion
Here's how much money MTN made from Cell C
MTN released its annual results for 2021 on Wednesday, reporting 21.7% increased wholesale revenue in its South African division.
The revenue increase was supported by MTN South Africa’s national roaming deal with Cell C, and solid growth in the mobile virtual network operator (MVNO) portfolio, the company reported.
MTN SA said it recognised R2.7 billion in national roaming revenue from Cell C, up 33.9% from just under R2 billion last year.
“A balance of R236 million remained unrecognised, as at 31 December 2021,” MTN stated.
“Revenue recognition remains on a cash basis as Cell C works towards its recapitalisation.”
MTN explained that Cell C entered into a settlement agreement in February 2021 specifying the repayment schedule for long-outstanding amounts.
However, Cell C is facing significant challenges and has not been able to pay its debts.
Cell C’s creditors have given the company grace on its repayments to allow it to pursue a recapitalisation plan.
“Cell C continues to work on its recapitalisation programme which, if adequately resolved, would result in a change in the Group’s accounting treatment of Cell C revenues, back to an accounting methodology of recognising revenue as performance obligations are satisfied,” MTN stated.
MTN said that overall, it had not recognised R448 million in revenue from Cell C relating to satisfied performance obligations.
In addition to its roaming deal with Cell C, MTN surprised the market last year when it announced a roaming deal with Telkom.
The agreement came into effect on 1 November 2021.
MTN SA said it would provide 2G, 3G and 4G services to Telkom.
“This agreement aligns with the Group’s strategy to monetise the investments it has made in networks and continue to build on the network as a service platform, where MTN SA is a key driver,” the company stated.
In line with this strategy, MTN SA said its MVNO business continues to grow.
“At the end of 2021, there were over 550k active customers, from MVNO partners connected to the MTN network,” it said.
“MTN SA continues to invest in the expansion of its network capacity to further enable infrastructure sharing.”
