MTN Ghana has earned a profit of GH¢2.33 billion in the first half of 2024, marking a 36% increase compared to the previous year.
The company’s unaudited financial report reveals a 31.2% year-on-year rise in service revenue, driven by increased earnings from data, Mobile Money, and digital services, along with improved 4G connectivity and a 3.9% growth in its subscriber base.
MTN Ghana also allocated GH¢2.8 billion in capital expenditures to sustain network quality, broaden coverage and capacity, and upgrade its IT systems.
This investment supported a nationwide customer base of 28.4 million, with an additional 0.6 million customers added in the second quarter.
Voice revenue falls by 3.1%
Voice revenue fell by 3.1% year-on-year to GH¢1.7 billion as customers opted for more affordable plans. However, this decline was offset by a 13.7% increase in voice usage minutes, thanks to the company’s efforts to boost customer engagement through its value management programs. These measures also played a role in decreasing customer churn.
The share of voice revenue in total service revenue dropped from 29.1% to 21.5% year-on-year, shifting towards faster-growing products and services.
Data revenue grew strongly
Data revenue continued to grow strongly, up by 55.0% year-on-year to GH¢4.0 billion. This was supported by a 15.9% year-on-year increase in active data subscribers and a 7.2% year-on-year rise in megabytes consumed per active user per month which underpinned a 24.2% year-on-year growth in data traffic during the period.
The contribution of data revenue to total service revenue increased from 41.5% to 49.0% year-on-year.
Mobile money growth increased by 44.8%
Mobile Money revenue surged by 44.8% year-on-year to GH¢1.9 billion.
This growth was driven by a 16.2% year-on-year rise in the active user base, reflecting enhancements in digital financial solutions.
As a result, advanced services saw a 73.3% year-on-year increase, with cash-out services growing by 33.0% year-on-year and peer-to-peer transactions rising by 43.1% year-on-year.
Mobile Money’s share of total service revenue grew from 21.7% to 24.0% year-on-year.
Digital revenue grew strongly
Digital revenue saw a substantial increase of 59.4% year-on-year, reaching GH¢101.4 million.
This growth was mainly fueled by gains in video content, gaming, and ring-back tones.
Improvements in customer experience and a sustained emphasis on delivering both locally and globally relevant digital services played a key role in this expansion. The number of ayoba users grew by 14.8% year-on-year, totaling 2.9 million.
The MyMTN app also underwent several upgrades, amassing a user base of 1.6 million, with over 0.4 million active daily users. Plans are in place for additional enhancements and new features in the second half of the year to further improve the digital experience for users.
The share of digital revenue in total service revenue increased from 1.0% to 1.3% year-on-year.
Commenting, MTN Ghana Chief Executive Officer, Stephen Blewett, said “MTN Ghana delivered strong results in the first half of 2024, despite the difficult macroeconomic conditions. This reflects the resilience of the business and our ability to provide essential connectivity solutions to our customers. We have also been able to increase financial inclusion, supporting the further development of the country”.
Outlook
MTN Ghana said it will continue to invest to develop its platforms and improve its network and services to unlock value for stakeholders in line with our Ambition 2025 strategy.
“We continue to explore efficiency measures, preserve liquidity and strengthen the balance sheet against a backdrop of election-related and macroeconomic uncertainties. MTN Ghana maintains its medium-term guidance of high twenties (in percentage terms) growth in service revenue”, it explained.