MTN Ghana in its recent 7th Annual General Meeting (AGM) posted a remarkable 34.5% year-on-year increase in service revenue in 2024, far surpassing its initial projections. The growth was largely attributed to the surging demand for data services, Mobile Money (MoMo), and digital platforms. This led to a record-breaking profit after tax of over GHS5 billion. Consequently, MTN Ghana declared a final dividend of 24 pesewas per share, reflecting the company’s commitment to rewarding shareholders for their continued trust and investment. The final dividend brings the total dividend for 2024 to 30.5 pesewas per share, reflecting a significant increase from the previous year.
According to the company’s financials, data revenue alone rose by a staggering 53.8% to GHC 9.0 billion. This leap was underpinned by a 13.7% rise in active data users and higher consumption per user, reflecting an increasingly digital lifestyle among Ghanaians.
Speaking to The Vaultz Africa, Chief Executive Officer, Mr. Stephen Blewett, offered an insight into the telecoms giant’s extraordinary financial performance over the past year 2024. He unveiled the underlying factors driving MTN Ghana’s impressive year-on-year growth, as well as how the company plans to sustain this momentum amid growing market competition and economic headwinds.
Describing what contributed to the 26.3% year-on-year growth in MTN’s profit after tax, Mr. Blewett explained “It’s driven by two [key] things; [and] a couple of things. First of all, data revenue is driving it”.
… [also] mobile money revenue has been a really big driver for us and continues to be a driver for us. And then we’ve got a lot of developments in other areas, like enterprise business grew 71% year on year… and we had our digital business grew [about] 66% year on year. So, those two businesses are really starting to gain momentum… Those things helped drive us.”
MTN’s performance paints a picture of a diversified and strategically growing organization. Beyond its traditional telecoms offerings, the company’s enterprise business and digital services have become powerful engines of revenue. Enterprise business services, tailored to support both SMEs and large organizations, have emerged as a growth frontier, while digital services continue to reshape consumer engagement.
Considering the growth sustainability in data revenue in the face of Ghana’s current macroeconomic challenges, Mr. Blewett highlighted the continuous investment in infrastructure and customer-centric innovation.
We do it by improving our network. So, that means in improving the quality of the network, in terms of new equipment, we spent over $230 million this year [2024] on equipment. It also means getting more spectrum, which gives us more bandwidth, and that allows us to give a better service.
“When you give a better service, people use more, and we can see it in over the last few years. Even now, customers on average use 10.2 gigs of data; that’s a lot, and it’s gone up from seven. So, it’s increasing, and it increases if you got a quality network. So, we keep working at improving the network. That and customer experience are number one and two things.”
Meanwhile, this strategic focus on infrastructure development aligns with global best practices. A high-quality network does not only guarantee seamless connectivity but also drives higher user satisfaction, leading to increased data usage—a trend clearly depicted in MTN Ghana’s figures.
However, Ghana’s telecommunications industry is not without threats. The entrance of Starlink, a satellite-based internet service provider, has sparked conversations about competition and market dynamics. Acknowledging this development, Mr. Blewett remained unfazed.
Starlink is like any other competitor. We view them as any other competitor. But, there are a few things to consider. Starlink, in one part, is a potential competitor when it comes to direct-to-devices in the home. So, you saw that we are investing a lot in our fixed wireless and our fiber. That, in some way, is responding to that.”
While some might view Starlink as a disruption, MTN sees both competition and collaboration. MTN Ghana has already begun scaling its fixed wireless and fibre deployments to counter any potential market share erosion. More importantly, Mr. Blewett highlighted the possibility of strategic cooperation saying “in other areas, we can work with Starlink, where it can become a redundant backup for, for example, international cables.”
This dual approach reflects MTN’s agile mindset in an era where technological advancement continues to blur the lines between competition and collaboration. Acknowledging Starlink’s capabilities, MTN Ghana’s CEO also pointed out that no system is without its flaws.
… Starlink does have physical limitations as well, like any of us do. When there’s harmattan and things like that, these things do influence the performance of what they can do, but obviously, we are responding.”
MTN Ghana Reports Over GHS5.0 Billion Profit After Tax
MTN Ghana recorded a profit after tax of over GHS5.0 billion in 2024, reinforcing its position as the dominant force in Ghana’s telecommunications market. Despite macroeconomic challenges, the company’s ability to generate substantial earnings demonstrates its strong business model and effective strategic execution.
A key highlight of the company’s financial performance was the significant reduction in financing costs. Finance costs declined by 9.5% year-on-year to GHS701.7 million, primarily due to lower loan balances and reduced interest rates. On the other hand, finance income surged by 29.0% to GHS372.5 million, reflecting strategic gains from investments in call and fixed-term deposits. Consequently, net finance costs dropped by 32.3% year-on-year to GHS329.1 million, further boosting profitability.
However, the company’s corporate tax charge rose sharply by 59.7% to GHS2.6 billion. This increase was largely due to the Ghana Revenue Authority (GRA) concluding an audit for the financial years 2014 to 2018. The audit resulted in an assessment of GHS309.7 million, including a principal amount of GHS66.5 million and penalties and interest totaling GHS243.2 million, which MTN Ghana settled.
Despite the higher tax obligation, MTN Ghana’s profit after tax increased by 26.3%, reaching over GHS5.0 billion. The company’s earnings per share (EPS) also improved by 26.3% to GHS0.380, reflecting its continued financial strength and market leadership. As the telecoms giant navigates Ghana’s dynamic business environment, its solid performance highlights its resilience and capacity for sustainable growth.
Moreover, MTN Ghana’s customer base grew by 6.5% year-on-year, reaching 28.5 million subscribers, driven largely by the expansion of data services. Active data users increased to 17.5 million, highlighting the company’s ability to attract and retain customers through superior service delivery and a strong digital offering.
Dividend Per Share Increases By 35.6% YoY
The company’s strong financial performance led to a 35.6% increase in dividend per share compared to 2023. During the year, the Board declared an interim dividend of GHS0.065 per share, which was paid on 6 September 2024. Following the company’s full-year results, the Board has proposed a final dividend of GHS0.24 per share, bringing the total dividend for 2024 to GHS0.305 per share.
This total payout represents 80.3% of profit after tax, aligning with the company’s dividend policy, which targets a distribution range of 60% to 80% of earnings. In absolute terms, this translates to a total cash dividend of GHS4.0 billion, underscoring the company’s commitment to rewarding its shareholders.
The remarkable growth in dividends highlights MTN Ghana’s ability to drive value through prudent financial management and operational efficiency. The company’s strong earnings performance, strategic execution, and disciplined cost control have contributed to this significant increase.
By maintaining a healthy balance between reinvestment and shareholder returns, MTN Ghana continues to demonstrate financial resilience and a commitment to sustainable growth. These results reinforce investors’ confidence and position the company for continued success in the telecommunications sector.
Voice Revenue Declines, Data and Digital Services Surge
Despite MTN Ghana’s strong overall performance, voice revenue experienced a decline of 0.9% year-on-year, settling at GHS3.5 billion. This drop is attributed to a significant shift in consumer behavior, as customers increasingly favor Voice over Internet Protocol (VoIP) services over traditional phone calls. The transition has been driven by rising data consumption and the growing adoption of smartphones, reinforcing MTN Ghana’s strategic emphasis on digital transformation.
To counterbalance the decline in voice revenue, the company recorded substantial growth in data and digital services. Notably, customer engagement remained strong, with a 13.5% year-on-year increase in usage, as measured by minutes of use (MoU). However, the financial impact of this growth was mitigated by a shift from high effective price per minute to lower-cost propositions, affecting overall revenue generation.
As a result, voice revenue’s contribution to total service revenue declined from 26.8% to 19.7%. This shift highlights the increasing dominance of data services and mobile financial solutions, which are becoming core revenue drivers.
Stellar Performance in Service Revenue
In the service revenue category, MTN Ghana delivered a stellar financial performance in 2024, recording an impressive 34.5% year-on-year (YoY) growth in service revenue. Despite Ghana’s high inflation and currency depreciation, the telecom giant maintained strong momentum by prioritizing customer engagement, expanding its service portfolio, and investing in infrastructure to enhance network coverage.
The company’s financial report for 2024 highlights a total revenue increase of 34.4%, reaching a little over GHS17.9 billion, while Service revenue also surged by 34.5% to about GHS17.9 billion, surpassing medium-term projections. This growth was largely driven by substantial gains in Data, Mobile Money (MoMo), and Digital services, reflecting MTN Ghana’s ability to meet evolving consumer demands.
Additionally, the company’s investment in network expansion contributed to a 6.5% growth in its subscriber base, which now stands at 28.5 million. By strengthening its digital and financial services, MTN Ghana has positioned itself as a market leader, further solidifying its competitive edge.
As MTN Ghana continues to innovate and expand, its remarkable performance underscores the critical role of telecommunications in Ghana’s economic growth. With sustained investments in technology and customer experience, the company remains poised for further success in the coming years.
2024 Revenue Breakdowns
The company’s revenue growth was largely driven by a significant increase in data and Mobile Money (MoMo) services. The increasing reliance on digital transactions and mobile connectivity contributed to these remarkable gains, reinforcing MTN Ghana’s role in shaping Ghana’s digital economy.
Data revenue, which was the highest contributor to service revenue, grew by 53.8% to GHS9.0 billion, highlighting the growing demand for data services. This impressive increase was primarily fueled by significant enhancements in network connectivity, which facilitated a 13.7% rise in active data subscribers, bringing the total active users to approximately 17.5 million. Additionally, there was a 19.0% growth in the average megabytes consumed per active user each month, rising to an average of 10.2GB, indicating a deeper reliance on data services for daily activities.
Mobile Money revenue continued to showcase robust growth with a year-on-year increase of 54.4%, reaching a total of GHS4.4 billion. This impressive performance was supported by a 12.8% rise in active subscribers, highlighting effective user acquisition and retention strategies. Digital revenue recorded the highest growth rate at 66.1% to GHS0.2 billion, highlighting increased adoption of its digital service offerings. In contrast, voice revenue declined slightly by 0.9% to GHS3.5 billion reflecting the shift towards data-centric communication options. Additionally, other non-core service revenue decreased by 19.6% to GHS0.7 billion.
The MoMo platform experienced significant growth in transactional activities by 17.4% year-on-year. Withdrawal revenue increased by 45.2% year-on-year, while transfer revenue also rose significantly by 44.6%, indicating heightened customer activity and a shift towards more seamless money movement.
The advanced services segment was the standout performer during this financial period, achieving an impressive growth rate of 82.8%. This significant increase was mainly driven by the success of payment solutions and innovative lending products, which meet the changing needs of users looking for tailored digital financial options.
As a result of these strong results, MoMo’s contribution to total service revenue increased by 3.2 percentage points, rising from 21.7% in the previous year to 24.9%. This increase signifies the growing importance of MoMo in revenue diversification journey and highlights its potential for future growth.
Strategic Cost Management
MTN Ghana’s strong emphasis on cost efficiency led to a 31.3% increase in earnings before interest, taxes, depreciation, and amortization (EBITDA), reaching GHS10.2 billion.
However, inflation remained high throughout the year, driving a 38.9% year-on-year increase in total costs, which rose to GHS7.7 billion. This significant cost surge was exacerbated by the depreciation of the Ghana cedi and the base effects of the management fee, which had not been charged in the previous year, impacting year-on-year comparisons.
To mitigate these financial pressures, the company actively pursued its expense efficiency program, aiming to cushion the business against rising costs. While these efforts supported EBITDA growth, the EBITDA margin declined by 1.3 percentage points to 57.1%. This contraction reflects the persistent challenges posed by cost inflation and currency depreciation.
Despite these pressures, MTN Ghana remains committed to driving operational efficiency and sustaining profitability. By strategically managing expenses and optimizing resources, the company continues to demonstrate resilience in a challenging economic environment. These measures reinforce MTN Ghana’s ability to balance growth with financial sustainability, ensuring long-term value creation for its shareholders.
Healthy Balance Sheet
MTN Ghana continued to exhibit financial resilience in 2024, maintaining a robust balance sheet despite macroeconomic challenges. The company’s total assets expanded by 33.7% to GHS41.4 billion, with current assets leading the growth.
Current assets surged by 38.9% to GHS29.7 billion, driven by higher cash reserves and increased tax assets. Additionally, non-current assets grew by 22.2% to GHS11.7 billion, reflecting MTN Ghana’s continued investments in network infrastructure and IT systems.
While total liabilities rose by 38.5% to GHS30.9 billion, this was primarily due to a 44.9% increase in current liabilities, which reached GHS28.5 billion, driven by higher payables and lease liabilities. However, non-current liabilities declined by 8.3% to GHS2.5 billion, reflecting reductions in lease and Indefeasible Right of Use (IRU) liabilities.
MTN Ghana also maintained compliance with all debt covenants related to its five-year additional facility agreement, closing the year with an outstanding borrowing of GHS74 million. Furthermore, the company’s cash and cash equivalents saw double-digit growth of 11.5%, reaching GHS3.3 billion, reinforcing its financial stability.
With a strong balance sheet and strategic investments, MTN Ghana remains well-positioned for sustained growth and innovation in Ghana’s telecommunications industry.
Strategic Investments in 4G and Digital Services
MTN Ghana reaffirmed its commitment to delivering superior service quality by making significant investments in network expansion and IT modernization. The company focused on infrastructure upgrades, geographic expansion, and deploying advanced network technologies to cater to the increasing demand for data and digital services.
In 2024, MTN Ghana allocated GHS3.1 billion to capital expenditure, prioritizing the enhancement of its 4G infrastructure and digital service offerings. These investments led to improved customer experiences, faster data speeds, and greater digital engagement. The growing demand for data services was further fueled by targeted commercial initiatives, including specialized data bundles, marketing campaigns, and promotional offers that drove higher user participation.
A key milestone in MTN Ghana’s technological advancement was its aggressive expansion of 4G-plus technologies, ensuring high-speed data services for both residential and mobile users. Additionally, the company made significant progress in its localization journey, surpassing the regulatory requirement of 25% localization for Scancom PLC by achieving 30%. This achievement was officially recognized by the National Communications Authority, confirming MTN Ghana’s compliance with the 4G license localization mandate.
Through these strategic investments and compliance milestones, MTN Ghana continues to reinforce its position as a leader in Ghana’s telecommunications industry.
Outstanding Year For Telcos’ Giant
MTN Ghana’s commitment to excellence and innovation was prominently highlighted in 2024 through a range of prestigious awards and recognitions. The Company’s exceptional performance in the telecommunications sector was acknowledged with multiple honors at the 2024 Ghana Information Technology and Telecoms Awards (GITTA).
MTN Ghana earned nine awards, including the highly regarded Best Digital Transformation Company of the Year and Best Company in Sustainability. In addition to these accolades, MTN’s efforts in digital customer service were recognized with the “Digital Experience in Customer Service” award for MTN Viibe Video.
The recognition of individual leaders at MTN Ghana further emphasized the Company’s industry leadership. Thomas Motlepa, the Chief Technical Officer, was named CTO of the Year for his contributions to network stability, while Dario Bianchi, the Chief Digital Officer, earned the Digital Personality of the Year award for his role in driving the Company’s digital growth. Also, the legacy of former CEO, Selorm Adadevoh, who was honored with the Telecom CEO of the Year award is worth celebrating.
Additionally, Antoinette Kwofie, CFO, was named a Top 50 Woman of Impact, highlighting her significant role in shaping the telecommunications industry. MTN Ghana’s recognition at the 21st Ghana Club 100 Awards further underscored the Company’s leadership, securing 3rd place and being named the top-ranked telecommunications firm.
MTN Ghana’s commitment to project management excellence was also demonstrated at the 2024 Project Management Excellence Awards, where it won five awards, including the overall Project of the Year. Josephine Jacaboba Amoah was also named Project Manager of the Year for her leadership in the successful transition of the Global Network Operation Center. Furthermore, MTN Ghana’s Project Management Office (PMO) received accolades for its diversity and inclusion practices at the 2024 PMO Global Awards in Istanbul.
In summary, the 2024 financial performance of Ghana’s leading telecommunications network, MTN Ghana, underscores its resilience and adaptability. Through strategic investments, cost efficiency measures, and a focus on innovation, the company remains well-positioned for sustained growth in an evolving digital landscape.
The company’s ability to navigate shifting consumer trends and economic challenges demonstrates its strength as a market leader in the telecommunications industry. By prioritizing digital transformation, enhancing customer engagement, and optimizing its service portfolio, the company is well-equipped to capitalize on emerging opportunities. As data and mobile financial services continue to gain prominence, MTN Ghana’s strategic focus on innovation and operational efficiency will be crucial in driving long-term growth and delivering sustained value to its shareholders and customers.