Mobile money drives strong MTN Q1 growth …accounts for 15% of revenue

The largest mobile telecoms operator in the country, MTN, has attributed its 29.4 percent year-on-year revenue growth in the first quarter of 2018 to a strong performance of its mobile money service, which alone accounted for 15 percent of its total revenue.

A media release by the company yesterday said as at end of the period under review, the company alone possessed 7.4 million active mobile money users as against the total 11.1 million active users of mobile money users in the country.

Although the central bank is yet to release figures for mobile money usage regarding uptake, value and volume of transactions for the first quarter of this year, the performance of MTN Mobile Money gives it a commanding lead over its two competitors, AirtelTigo Money and Vodafone Cash.

Commenting on the company’s overall performance, the statement signed by Georgina Fiagbenu, Senior Manager Corporate Communications, said the company recorded a good growth in subscribers – breaching the 16 million mark with the addition of 450,000 in the first three months of the year.

The release further stated that the company is planning to move ahead with ceding some portion of its ownership through an Initial Public Offer (IPO) on the Ghana Stock Exchange (GSE) next month.

“On 20th April 2018, we received all required regulatory approvals to proceed with the IPO and expect to make the offer available in late May 2018. A key priority will be to facilitate a broad base of local Ghanaian shareholders who can share in the risks and rewards in ownership of MTN,” the release said.

MTN Group Vice President for Southern and East Africa and Ghana and the current CEO of MTN Ghana, Ebenezer Asante, reacting to the development added: “I am pleased with our performance in the first quarter and look forward to the listing of MTN Ghana on the GSE. We have worked diligently to complete all regulatory requirements and are finalising internal processes to enable us to successfully execute the IPO”.

In 2015, MTN Ghana won a bid for a 4G licence in the 800 MHz spectrum. Under the terms of the licence, the National Communications Authority (NCA) required MTN Ghana to offer Ghanaian investors an opportunity to own part of its shares.

The listing is thus considered by the NCA as a key deliverable as part of the 4G licence.