In 2024, MTN Ghana reported a service revenue increase of 34.5% to GHS 17.9 billion ($1.1 billion), driven mainly by a 53.8% rise in data revenue and a 54.4% growth in Mobile Money services. The company’s profit after tax grew by 26.3%, showcasing strong financial performance despite a decline in voice revenue.
MTN Ghana has achieved significant financial growth in 2024, reporting a service revenue surge of 34.5% to GHS 17.9 billion ($1.1 billion). This impressive performance was primarily fueled by a remarkable 53.8% increase in data revenue, which reached GHS 9.0 billion ($581 million), now representing over half of the total service revenue. Meanwhile, Mobile Money (MoMo) services also contributed notably, with revenue climbing by 54.4% to GHS 4.4 billion ($284 million).
The growth in data revenue is attributed to a 13.7% rise in active data subscribers, totaling 17.5 million, and a 19% increase in average data consumption per user. Consequently, data revenue’s portion of total service revenue expanded to 50.2%, up from 43.9% in 2023. Likewise, MoMo’s revenue increase was driven by a 12.8% growth in active users to 17.2 million, alongside the significant expansion of digital payment and lending services.
Despite the successes in data and mobile financial services, MTN Ghana experienced a minor decline in voice revenue by 0.9%, totaling GHS 3.5 billion ($225 million). This reflects a broader industry trend of shifting preferences from traditional voice calls to voice-over-Internet Protocol (VoIP) alternatives. The contribution of voice revenue to total service revenue dropped to 19.7%, compared to 26.8% in the previous year.
The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 31.3% to GHS 10.2 billion, although the EBITDA margin did contract slightly to 57.1%. This decline in margin is attributed to macroeconomic challenges and prior management fee adjustments impacting their financials. Nonetheless, MTN Ghana’s profit after tax rose by 26.3%, amounting to GHS 5.0 billion, despite an increase in direct tax liabilities.
Remarkably, while MTN Ghana demonstrated robust performance, MTN Group reported a loss of ₦400.4 billion ($267 million) for the fiscal year ending December 31, 2024, due in part to significant currency losses in Nigeria. This contrast underscores the complexities of navigating financially diverse markets across Africa. Meanwhile, in the first half of 2024, the firm reported a continued upward trend in service revenue, achieving a year-on-year increase of 31.2% and expanding its subscriber base.
MTN Ghana’s investment of GHS 2.8 billion ($180 million) toward improving network infrastructure and IT systems exemplifies its commitment to maintaining service quality. Despite operational hurdles, the company remains focused on its Ambition 2025 Strategy, emphasizing sustained growth and the enhancement of its digital platform offerings within the evolving telecommunications domain.
In summary, MTN Ghana’s outstanding financial performance in 2024, characterized by substantial growth in data and MoMo services, demonstrates its successful adaptation to the changing telecommunications landscape. While the company navigates challenges within the broader MTN Group, its strategic focus on digital offerings and customer engagement continues to position it for future growth.
Original Source: techpoint.africa
