Telecommunications company MTN Ghana has recorded an increase in revenue of ₵8.1 billion for the first half of 2024.

This represents 31.1 percent jump over the ₵6.1 billion that it recorded by the end of June 2023. 

The mobile operator announced this in its financial performance for the first six months of the year ending June 2024.

Revenue Drivers

MTN in the financial statement explained that the growth in revenue was driven by higher data usage, mobile money and digital revenue supported by “enhanced 4G connectivity and a 3.9 percent Year on Year expansion in the subscriber base”.

According to the company, data revenue continued to grow strongly, up by 55.0 percent, year on year to ₵4.0 billion.

This was supported by a 15.9 percent year on year increase in active data subscribers and a 7.2 percent year on year rise in megabytes consumed per active user per month, which underpinned a 24.2 percent year on year growth in data traffic in the period. The contribution of data revenue to total service revenue increased from 41.5 percent to 49.0 percent year on year.

Contribution of Mobile Money

Mobile Money is another service that played a significant contribution to the strong revenue posted is by MTN.

Mobile Money revenue increased by 44.8 percent year on year to ₵1.9 billion. This was supported by a 16.2 percent on year on year increase in the active user base as it continued to improve on digital financial solutions offering.

Consequently, this led to the growth in advanced services of +73.3 percent Year on Year, while cash-out services +33.0 percent Year on Year and peer-to-peer transactions +43.1 percent Year on Year  also sustained robust growth trajectories. The overall contribution of Mobile Money revenue to total service revenue increased from 21.7 percent to 24.0 percent Year on Year.

Digital revenue grew strongly, increasing by 59.4 percent to ₵101.4 million. This was primarily driven by video, gaming and ring-back tones. The enhancement of customer experience and a continued focus on providing locally and internationally relevant digital offerings contributed to this growth. The number of ayoba users increased by 14.8 percent Year on Year to reach ₵2.9 million.

The MyMTN app also saw several improvements and reached a user base of 1.6 million, with over 0.4 million daily users. Several more improvements and new features are planned for the second half of the year to offer an even better digital experience for our customers. The contribution of digital to total service revenue increased from 1.0 percent to 1.3 percent Year on Year

MTN’s Profits ending June 2024

The developments resulted in MTN posting a Profit Before of Tax of ₵3.3 billion, up by 36.6 percent from the ₵2.4 billion that the Telecoms company posted in June 2023.

 Investments by MTN for half year…

MTN added that it also invested ₵2.8 billion in total capex to maintain network quality, expand coverage and capacity, as well as to enhance its IT systems. This served the nationwide customer base of 28.4 million, which reflected 0.6 million additional customers connected in the second quarter.

Regulatory Updates and localization of MTN

According to MTN, Mobile Money Limited is committed to localising Scancom PLC .

By the end of the second quarter, the level of local ownership of Scancom PLC was 27.9%. As a result, the regulator has confirmed Scancom PLC’s achievement of the 25.0% localisation requirement for its 4G license.

“We are committed to further localise Scancom PLC and Mobile Money Limited, and we will continue to work closely with regulators and other relevant stakeholders towards achieving our goal”, it said.

Dividend Payment

Based on this strong growth in revenue for the first half of 2024, MTN is proposing an interim dividend increased by 30.0 percent to ₵0.065 per share, compared to the 5 pesewas in 2023

In view of the foregoing, the ex-dividend date has been set as Wednesday, 14 August 2024. Consequently, an investor purchasing MTNGH shares before this date will be entitled to the interim dividend. However, an investor buying MTNGH shares on or after Wednesday, 14 August 2024 will not be entitled to the interim dividend.

Outlook

According to MTN, It will continue to invest to develop its platforms and improve its network and services to unlock value for stakeholders in line with its 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 noted that it expects to keep its medium-term guidance of high twenties (in percentage terms) growth in service revenue.