MTN Ghana has promised to execute its Ambition 2025 Strategy despite the macroeconomic challenges by focusing on sustained growth and enhancing its platform strategy.

This is after the telecom giant posted a 26.3% year-on-year profit growth to GH¢5.028 billion 2024.

The Ambition 2025 Strategy includes driving platform development, improving home connectivity, leveraging artificial intelligence applications, and encouraging greater app adoption for fintech users and the general subscriber base. Additionally, the company will implement expense efficiency initiatives aimed at mitigating the impact of inflation and currency depreciation on the business.

MTN Ghana pointed out that it will continue to pursue its value-based capital allocation strategy to invest capex strategically to maximize long-term shareholder value. This will enable it to capitalise on the increasing demand for data by expanding access, particularly in rural areas and by promoting the adoption of smartphones.

It also pledged to expand partnerships with financial institutions, agents, and merchants since it is essential for the growth of the Mobile Money (MoMo) ecosystem and the advancement of innovative MoMo services.

Operational and Financial Review

MTN Ghana achieved a 34.5% year-on-year increase in overall service revenue in 2024, delivered ahead of its targeted medium-term trend of high-twenties growth.

According to the firm, its service revenue growth was supported by strong growth in data, mobile money (MoMo) and digital services. Additionally, it was bolstered by ongoing investments aimed at improving 4G connectivity, which was complemented by initiatives to enhance overall customer experience and growth.

“We continued the investment in our network and technology, spending GH¢3.1 billion to maintain network quality, expand coverage and capacity and improve our IT systems. These investments underpinned a 6.5% year-on-year growth in our subscriber base, bringing the total to 28.5 million, as we continued to invest in building a resilient network and the latest technology to ensure that our customers remain connected”.

Data Revenue

Data revenue experienced significant growth, rising by 53.8% year-on-year to GH¢9.0 billion.

This increase was driven by a 13.7% year-on-year rise in active data subscribers and increased smartphone adoption, which in turn led to a 19.0% increase in the megabytes consumed per active user per month.

The contribution of data revenue to total service revenue increased to 50.2% (2023: 43.9%).

Voice Revenue

Voice revenue decreased by 0.9% year-on-year to GH¢3.5 billion due to a shift from traditional calls to voice over internet protocol (VoIP) services, driven by increased smartphone adoption and data usage.

However, the CVM initiatives and other portfolio optimization initiatives supported a 13.5% growth in usage (measured by minutes).

The contribution of voice revenue to total service revenue declined to 19.7% (2023: 26.8%), reflecting the ongoing shift in contribution toward faster-growing products and services such as data and mobile financial services.

MoMo Revenue

Mobile money revenue sustained its robust positive momentum with year-on-year revenue growth of 54.4% to GH¢4.4 billion.

This growth was driven by a 12.8% year-on-year growth in active users, a review of the fee structure and significant growth in advance services. Withdrawals recorded a strong growth of 45.2% year-on-year, while transfers grew by 44.6%.

MoMo’s revenue contribution to total service revenue increased to 24.9% (2023: 21.7%).

Digital Revenue

Digital revenue experienced strong growth, with a year-on-year increase of 66.1%, reaching GH228.2 million.

This outcome was supported by an 11.7% year-on-year rise in active subscribers and increased usage of our products and services such as video, gaming and ring-back tones. Enhanced customer experience and suite of digital services supported the growth in the user base.

The contribution of digital to total service revenue increased to 1.3% (2023: 1.0%).