MTN Ghana has reported a profit before tax of GH¢3.3 billion for the first half of 2024, up 36.6% from GH¢2.4 billion in June 2023. The company’s total revenue increased by 31.1% to GH¢8.1 billion from GH¢6.1 billion during the same period last year, according to its financial report for the six months ending June 2024. MTN attributes this revenue growth to higher data usage, mobile money, and digital revenue, driven by “enhanced 4G connectivity and a 3.9% year-on-year expansion in the subscriber base.”
Data revenue rose by 55% year-on-year to GH¢4.0 billion, fueled by a 15.9% increase in active data subscribers and a 7.2% rise in megabytes consumed per active user per month, resulting in a 24.2% growth in data traffic. Consequently, data revenue’s share of total service revenue increased from 41.5% to 49% year-on-year. Mobile Money was a significant contributor to MTN’s revenue, with an increase of 44.8% year-on-year to GH¢1.9 billion, supported by a 16.2% rise in the active user base. Advanced services grew by 73.3%, cash-out services by 33%, and peer-to-peer transactions by 43.1%, raising Mobile Money revenue’s share of total service revenue from 21.7% to 24% year-on-year.
Digital revenue grew by 59.4% to GH¢101.4 million, driven mainly by video, gaming, and ring-back tones, with enhanced customer experiences and a focus on relevant digital offerings. Ayoba users increased by 14.8% year-on-year to 2.9 million, while the MyMTN app’s user base grew to 1.6 million, with over 0.4 million daily users, increasing digital revenue’s contribution to total service revenue from 1% to 1.3% year-on-year.
The company invested GH¢2.8 billion in total capital expenditure to maintain network quality, expand coverage and capacity, and enhance IT systems, serving a customer base of 28.4 million, reflecting an additional 0.6 million customers connected in the second quarter. By the end of the second quarter, local ownership of Scancom PLC reached 27.9%, exceeding 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,” the company stated.
In response to the strong revenue growth in the first half of 2024, MTN proposed a 30% increase in the interim dividend to GH¢0.065 per share, up from 5 pesewas in 2023. MTN plans to continue investing in developing its platforms and improving its network and services to unlock value for stakeholders, aligning 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 expects to maintain medium-term guidance of high twenties (in percentage terms) growth in service revenue.
