For the telephone operator MTN, good results from mobile money but profits in free fall

For the telephone operator MTN good results from mobile money

The telephone operator MTN, one of the largest operators on the African continent, presented its 2023 annual results on Monday March 25. Positive results with more and more mobile money users. However, results are affected by plummeting profits.

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The results are good for the financial services of the South African telephone operator MTN, with transactions up more than 30% on its MoMo service. For Techla Mbongue, research director for the Omdia design office, one of the reasons for the good health of this segment is that “ on the (African) continent, there is still a low banking rate “.

Another growth driver is the increase in available products. So, beyond money transfer, there is also commerce. This leads to an increase in the number of merchants. There are also other services such as loan services, insurance, and international funds transfer “, she continues.

MTN’s results this year, however, are marked by an impressive drop in profit of -79%. Poor performance due in particular to the economic situation in Nigeria, one of its largest markets. “ The real difficulties concern the macro: inflation reached almost 25% this year, and the devaluation of the Naira was very harsh and was felt in particular in network operating costs. We also had to deal with the obligation to register SIM cards and at the beginning of the year the overhaul of the Naira », Explains Ralph Mupita, the operator’s general manager.

MTN also said it would continue its investments. The group is working in particular on the development of a terrestrial cable to secure access to optical fiber.

Also listenMTN, the South African leader in mobile telephony