MTN Ghana has reported a remarkable financial performance for the year ending December 31, 2024, showcasing strong growth across various metrics. The telecommunications giant saw its service revenue soar by 34.5%, amounting to GHS 17.9 billion ($1.1 billion). This surge is significantly attributed to increased subscriber numbers and heightened demand for digital services.
During the fiscal year, the company recorded a 6.5% rise in mobile subscribers, bringing the total to 28.5 million. Active data subscribers experienced impressive growth of 13.7%, reaching 17.5 million, which positioned data revenue as a primary driver of their financial success. Specifically, data revenue grew by 53.8% to GHS 9.0 billion ($581 million), now constituting over half (50.2%) of total service revenue, up from 43.9% last year.
Equally transformative was the performance of Mobile Money (MoMo) services, with revenue leaping by 54.4% to GHS 4.4 billion ($284 million). Active MoMo users surged by 12.8% to 17.2 million. The growth of digital payment solutions and lending services expanded by 82.8% year-on-year, significantly increasing MoMo's contribution to total service revenue from 21.7% to 24.9%.
Despite the turmoil posed by high inflation rates and the depreciation of the Ghanaian cedi, MTN Ghana’s profits after tax climbed by 26.3% to GHS 5.0 billion ($322 million). Stephen Blewett, the CEO, expressed satisfaction with the company’s achievements, noting, “Our commitment to excellence... has yielded remarkable results.” He emphasized the importance of prioritizing customer experience and service integration, which have led to enhanced service delivery across all platforms.
MTN Ghana's growth was no small feat, especially as the company navigated through challenging macroeconomic conditions. The CEO remarked, “There is cautious optimism around the macroeconomic outlook for Ghana,” referencing the expected improvements, yet acknowledging the risks continued inflationary pressures pose to economic growth, consumer spending, and operating costs.
The company has made significant strides in supporting financial inclusion, which was underscored by its efforts to expand partnerships with financial institutions, agents, and merchants. “Our dedication to expansion partnerships with financial institutions is fundamental for the growth of the MoMo ecosystem,” Blewett added, reflecting on the strategic initiatives deployed to bolster its fintech services.
Operating costs and challenges deriving from the broader economic climate also impacted profit margins. The company's earnings before interest, tax, depreciation, and amortization (EBITDA) increased by 31.3% to GHS 10.2 billion, though its EBITDA margin contracted slightly to 57.1%—down 1.4 percentage points from the previous year. This marginal decline was attributed to rising expenses linked to infrastructure enhancements and overall economic shifts.
Further elevational factors included substantial capital investments amounting to GHS 4.4 billion ($300 million), predominantly directed at improving network quality and capacity. By the end of the fiscal year, MTN Ghana reaffirmed its commitment to maintaining its service delivery standards and enhancing its digital infrastructure, which has become pivotal for future growth.
The company also confirmed its role as a significant fiscal contributor, with GHS 8.6 billion ($555 million) paid in direct and indirect taxes. This payment signals MTN Ghana’s commitment not only to its stakeholders but also to the Ghanaian economy amid persisting economic hurdles.
Looking forward, the medium-term growth outlook remains focused, though challenges persist. MTN Ghana maintains its guidance of high-twenties percentage growth in service revenue as it prepares for anticipated macroeconomic shifts. Blewett noted, “Despite risks from inflation and currency vulnerability, we remain committed to executing our strategy, sustaining growth, and emphasizing cost efficiencies.”
Overall, MTN Ghana's stellar performance amid economic turbulence emphasizes its strategic agility and strong market position, paving the way for sustained efforts to innovate and optimize service delivery. Its focus on data, digital services, and financial inclusivity indicates the company's readiness to adapt to ever-evolving telecommunications landscapes.