MTN Ghana has reported a robust financial performance for the 2024 fiscal year, with service revenue growing by 34.5% to reach GHS 17.9 billion ($1.1 billion). The company exceeded its medium-term revenue target, driven primarily by significant growth in data and Mobile Money (MoMo) services.
Data Revenue Growth Fuels Performance
A key contributor to this revenue surge was data services, which experienced a remarkable 53.8% year-on-year increase, reaching GHS 9.0 billion ($581 million). This growth was attributed to a 13.7% rise in active data subscribers, totaling 17.5 million, and a 19.0% increase in average megabytes consumed per user. Consequently, data revenue now accounts for 50.2% of total service revenue, up from 43.9% in 2023.
Mobile Money Expansion Drives Revenue
MoMo services also played a pivotal role in MTN Ghana’s strong financial results. MoMo revenue surged by 54.4% to GHS 4.4 billion ($284 million), contributing 24.9% of total service revenue, compared to 21.7% in the previous year. The growth was driven by a 12.8% increase in active MoMo users to 17.2 million and the expansion of advanced digital services such as payments and lending, which saw an 82.8% year-on-year increase.
Decline in Voice Revenue Reflects Market Shift
In contrast, traditional voice revenue declined slightly by 0.9% to GHS 3.5 billion ($225 million), reflecting a continued shift from conventional voice calls to Voice-over-Internet Protocol (VoIP) services. Although total call usage increased by 13.5%, voice revenue’s share of total service revenue declined to 19.7%, down from 26.8% in 2023.
Profitability and Tax Contributions
MTN Ghana’s earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 31.3% to GHS 10.2 billion, though the EBITDA margin declined by 1.4 percentage points to 57.1% due to macroeconomic challenges and base effects from a management fee adjustment in 2023.
The company’s profit after tax increased by 26.3% to GHS 5.0 billion ($322 million), despite a 59.7% rise in direct tax charges to GHS 2.6 billion ($167 million). MTN Ghana reaffirmed its status as a key fiscal contributor, paying GHS 8.6 billion ($555 million) in direct and indirect taxes, along with GHS 468.4 million in fees, levies, and regulatory payments—equivalent to 50.3% of total revenue.
MTN Group’s Contrasting Performance
Despite MTN Ghana’s strong financial results, MTN Group reported a ₦400.4 billion ($267 million) loss after tax for the fiscal year ending December 31, 2024. This was primarily due to significant foreign exchange losses, particularly in Nigeria, where the naira’s devaluation adversely impacted earnings. The Group’s overall profitability declined despite revenue growth in several subsidiaries, highlighting the challenges of operating in diverse African markets.
Strategic Investments and Future Outlook
In the first half of 2024, MTN Ghana reported a 31.2% year-on-year increase in service revenue to GHS 8.1 billion ($522 million). Mobile subscribers reached 28.4 million, with an additional 0.6 million customers added in Q1. Active data subscribers grew to 16.4 million, while active MoMo users increased by 16.2% to 16.5 million.
The company also invested GHS 2.8 billion ($180 million) in network quality, coverage, capacity, and IT systems, reinforcing its commitment to long-term growth. Revenue from MoMo grew by 44.8%, while digital revenue surged by 59.4%, driven by increased demand for video, gaming, and ring-back tones.
Conclusion
Despite macroeconomic challenges, MTN Ghana continues to demonstrate resilience and strong financial performance, driven by its strategic focus on data and digital financial services. The company remains committed to executing its Ambition 2025 strategy, ensuring sustained growth and strengthening its platform capabilities. This performance underscores MTN Ghana’s adaptability in the evolving telecommunications landscape and positions it for continued success in the years ahead.
