MTN Ghana’s Revenue Surges Amid Data and Mobile Money Boom

MTN Ghana has reported impressive financial growth for the 2024 fiscal year, surpassing its medium-term revenue targets. The company’s success was largely driven by a surge in data and mobile money (MoMo) services, reflecting the shifting landscape of telecommunications in Ghana.

Data Revenue Skyrockets

A major highlight of MTN Ghana’s performance was the remarkable 53.8% year-on-year increase in data revenue, reaching GHS 9.0 billion ($581 million). This growth was fueled by a 13.7% rise in active data subscribers, which climbed to 17.5 million, alongside a 19.0% increase in average megabyte consumption per user. As a result, data revenue now makes up 50.2% of the company’s total service revenue, a significant rise from 43.9% in 2023.

Mobile Money Gains Momentum

MTN Ghana’s MoMo services also played a pivotal role in its financial success. MoMo revenue soared by 54.4% to GHS 4.4 billion ($284 million), supported by a 12.8% increase in active users, now totalling 17.2 million. The expansion of advanced financial services, including digital payments and lending, saw an impressive 82.8% year-on-year growth. MoMo’s share of total service revenue rose to 24.9%, up from 21.7% the previous year.

Voice Revenue Faces Decline

In contrast to the strong performance of data and MoMo services, voice revenue saw a slight dip, declining by 0.9% to GHS 3.5 billion ($225 million). Despite a 13.5% increase in overall call usage, the continued shift from traditional voice calls to voice-over-internet protocol (VoIP) services contributed to the drop. Consequently, voice revenue now accounts for 19.7% of total service revenue, down from 26.8% in 2023.

Profit Growth Despite Tax Challenges

MTN Ghana reported a 31.3% growth in earnings before interest, tax, depreciation, and amortisation (EBITDA), reaching GHS 10.2 billion. However, the EBITDA margin declined by 1.4 percentage points to 57.1%, impacted by macroeconomic challenges and base effects from a 2023 management fee adjustment. The company’s profit after tax climbed by 26.3% to GHS 5.0 billion, despite a steep 59.7% rise in direct tax charges of 2.6 billion ($167 million). Overall, MTN Ghana contributed GHS 8.6 billion ($555 million) in direct and indirect taxes, alongside GHS 468.4 million in regulatory fees, representing 50.3% of total revenue.

Group-Wide Challenges Persist

Despite MTN Ghana’s strong performance, parent company MTN Group reported a ₦400.4 billion ($267 million) loss after tax for the fiscal year ending December 31, 2024. The loss was largely attributed to severe foreign exchange losses, particularly in Nigeria, where the naira’s devaluation heavily impacted earnings. The stark contrast between MTN Ghana’s growth and MTN Group’s financial struggles highlights the economic challenges of operating across diverse African markets.

Future Growth Strategy

In the first half of 2024, MTN Ghana recorded a 31.2% year-on-year increase in service revenue to GHS 8.1 billion ($522 million). During this period, mobile subscribers rose to 28.4 million, with an additional 0.6 million customers joining in Q1. Active data subscribers reached 16.4 million, while MoMo users surged by 16.2% to 16.5 million. MoMo revenue grew by 44.8%, and digital services, including video, gaming, and ring-back tones, experienced a 59.4% rise. The company also invested GHS 2.8 billion ($180 million) in improving network quality, capacity, and IT infrastructure.

Despite industry-wide challenges, MTN Ghana remains committed to its Ambition 2025 strategy, focusing on digital financial services and sustained expansion. The company’s 2024 performance underscores its resilience and adaptability, positioning it for continued growth in Ghana’s evolving telecom sector.