MTN Records 31.1% Revenue Surge to GHS 8.1 Billion in H1 2024
MTN Ghana reported a substantial revenue increase for the first half of 2024, reaching ₵8.1 billion, marking a 31.1% rise from the ₵6.1 billion recorded by June 2023.
The telecommunications giant attributed this growth to a surge in data usage, mobile money services, and digital revenue.
Key Revenue Drivers
MTN Ghana’s financial statement highlighted a 55.0% year-on-year increase in data revenue, amounting to ₵4.0 billion. This growth was propelled by a 15.9% rise in active data subscribers and a 7.2% increase in megabytes consumed per active user per month.
Consequently, data traffic saw a 24.2% year-on-year surge. Data revenue’s contribution to total service revenue escalated from 41.5% to 49.0%.
Mobile Money Performance
Mobile money services significantly bolstered MTN’s revenue, with a 44.8% year-on-year increase to ₵1.9 billion.
The active user base grew by 16.2%, fueling a 73.3% year-on-year growth in advanced services, a 33.0% rise in cash-out services, and a 43.1% increase in peer-to-peer transactions. The overall contribution of mobile money revenue to total service revenue climbed from 21.7% to 24.0%.
Digital Revenue Growth
Digital revenue experienced a robust 59.4% year-on-year growth, reaching ₵101.4 million. This growth was primarily driven by video, gaming, and ring-back tones.
The number of ayoba users rose by 14.8% year-on-year to 2.9 million, while the MyMTN app saw improvements, reaching a user base of 1.6 million, with 0.4 million daily users. Digital revenue’s contribution to total service revenue increased from 1.0% to 1.3%.
Profit and Investments
MTN Ghana posted a profit before tax of ₵3.3 billion, up 36.6% from ₵2.4 billion in June 2023. The company invested ₵2.8 billion in capital expenditure to maintain network quality, expand coverage and capacity, and enhance IT systems.
This investment served a nationwide customer base of 28.4 million, reflecting an addition of 0.6 million customers in the second quarter.
Regulatory Compliance and Localization
MTN Ghana achieved 27.9% local ownership of Scancom PLC, surpassing the 25.0% localization requirement for its 4G license.
The company remains committed to further localizing Scancom PLC and Mobile Money Limited, working closely with regulators.
Dividend and Outlook
MTN Ghana has proposed an interim dividend of ₵0.065 per share, a 30.0% increase from 5 pesewas in 2023. The ex-dividend date is set for Wednesday, 14 August 2024.
Looking ahead, MTN Ghana plans to continue investing in platform development and network improvement, aligned with its Ambition 2025 strategy. The company aims to maintain its medium-term guidance of high-twenties percentage growth in service revenue, despite election-related and macroeconomic uncertainties.
