Telecommunications operator MTN, one of the largest operators on the African continent, presented its 2023 annual results on Monday, March 25. The results show positive trends with an increasing number of users utilizing mobile money services. However, the company’s profits have been significantly affected, experiencing a sharp decline.
MTN’s financial services segment has shown promising results, with transactions on its MoMo service increasing by over 30%. According to Techla Mbongue, research director for the analysis firm Omdia, one of the reasons for the robust performance of this segment is that “banking penetration rates remain low across the African continent.”
“Another growth driver is the expansion of available products. Beyond money transfers, there’s also commerce, leading to an increase in the number of merchants. Additionally, there are other services such as loans, insurance, and international fund transfers,” she added.
However, MTN’s results for this year are marked by an impressive 79% decline in profits. Poor performance is attributed notably to the economic situation in Nigeria, one of its largest markets.
“The real challenges lie in the macroeconomic sphere: inflation reached nearly 25% this year, and the devaluation of the Naira has been severe, particularly impacting network operating costs. We also had to contend with mandatory SIM card registration and the Naira’s restructuring earlier in the year,” explained Ralph Mupita, the company’s CEO.
MTN has also announced its commitment to continuing investments. The group is notably working on developing a terrestrial cable to secure access to fiber optic networks.