MBABANE – MTN Eswatini’s dominance in the telecommunications sector has slightly weakened.
This follows a drop in market share, customer base and overall revenue during the 2024 financial year. Management described this period as one of the most challenging in recent years.
The mobile operator’s market share fell by 1.1 per cent, from 73.7 per cent in 2023 to 72.4 per cent in 2024, as its active subscriber base decreased by 13 044 users, dropping from 1 049 743 to 1 036 699.
Outgoing Chief Executive Officer Wandile Mtshali, disclosed the figures on Friday, during the Swazi Empowerment Limited (SEL) Annual General Meeting (AGM) at the Royal Villas Hotel. SEL, one of Eswatini’s largest investment companies, holds a 19 per cent equity stake in MTN Eswatini.
Mtshali said the decline in subscriber numbers and market share reflected broader shifts in consumer behaviour and intensifying competition in the telecommunications market.
“The telecommunications environment is rapidly evolving. Customers are increasingly relying on internet-based communication platforms, which has had a direct impact on traditional voice and data revenue,” Mtshali explained.
MTN Eswatini’s revenue dropped by 4.9 per cent, from E1.5 billion in 2023 to E1.4 billion in 2024, while profit after tax fell sharply by 17.3 per cent, from E237.5 million to E196.3 million.
Mtshali attributed the revenue decline mainly to weak performance in voice and data services, which contracted by 5.7 per cent and 14.7 per cent, respectively.
“The fall in voice revenue was driven by lower usage, largely due to increased reliance on Voice over Internet Protocol (VoIP) services such as WhatsApp and Zoom. The decline in data revenue was influenced by the out-of-option changes implemented in July 2023, which had a full-year effect in 2024,” Mtshali said.
Despite the downturn in traditional revenue streams, MTN’s digital and fintech divisions continued to grow strongly, registering increases of 29.4 per cent and 10.2 per cent, respectively, as Mobile Money and digital service uptake surged across the country.
While MTN managed to reduce its cost of sales by 4.4 per cent—from E357.4 million to E341.8 million, due to cost containment and lower revenue volumes, these savings were offset by a 6.1 per cent increase in operating expenditure, which rose from E582.4 million to E617.8 million.
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