MTN Group, Africa’s largest mobile network operator led by Zimbabwean executive Ralph Mupita, faced a challenging first quarter of 2024. Despite its strategic focus on “leading digital solutions for Africa’s progress,” service revenue declined by R9.93 billion ($539.92 million).
The telecom giant grappled with persistent high inflation, a tough macroeconomic environment, and local currency devaluations in key markets, particularly Nigeria. This comes as MTN strives to solidify its position in Africa’s rapidly evolving digital landscape.
MTN fintech grows despite service revenue decline
Quarterly results for the period ended March 31, 2024, show a service revenue decline of 18.8 percent, or R9.93 billion ($539.9 million), to R42.9 billion ($2.33 billion) from R52.83 billion ($2.87 billion) in Q1 2023. This drop stemmed from a 32.2 percent decrease in voice revenue and a 14.7 percent decline in data revenue.
However, fintech revenue rose 11.4 percent, with transaction volumes rising 18.3 percent to 4.8 billion and transaction value up 11.2 percent to $72.3 billion. This growth is attributed to improved network availability compared to Q1 2023 and a shift towards bundled voice and data offerings.
Ralph Mupita attributed the decline to a challenging macroeconomic environment exacerbated by global geopolitical tensions. He stated, “The macro environment in the first quarter of 2024 remained challenging, with ongoing high inflation as well as local currency devaluations in some of our key markets.”
Data services drive subscriber growth
Under Ralph Mupita, MTN Group has achieved significant milestones, serving over 288 million subscribers across 18 markets. His strategic vision and execution have fueled MTN’s expansion, earning him recognition as one of Southern Africa’s most influential CEOs. His minority stake in MTN is currently valued at $4.1 million.
Reflecting the burgeoning demand for data services, active data subscribers increased 7.8 percent to 149.2 million, while total subscribers saw a modest 1 percent increase to 287.6 million. Additionally, active Mobile Money (MoMo) monthly active users (MAU) grew 6.2 percent to 65.5 million.
Undoubtedly, Mupita’s leadership has propelled MTN’s expansion, anchoring the company within Africa’s digital transformation narrative and solidifying its position as a key player in the continent’s telecommunications landscape.
