MTN’s H1’22 results show strong fintech business growth
South African mobile network operator MTN’s latest financial results showed a solid 14% growth of its fintech business in the first 6 months of 2022. The volume of mobile money transactions increased by 31.5% year-on-year, while the value of transactions increased by 11, 7%.
The company’s active mobile money customers also increased by 24.0% to 60.7 million. The number of agents also increased by 26.9% to 1.1 million while sales representatives increased by 62.7% to a total of 946,249 across MTN’s 19 markets.
According to MTN, the growth in fintech revenue was mainly driven by the company’s conscious decision to cut person-to-person (P2P) prices in markets such as Ghana and Ivory Coast, as well as the introduction of new taxes and fees on mobile money. transactions in certain markets.
In Nigeria, MTN added 37,109 mobile money agents to end the period with more than 800,000 registered agents, of which approx. 166,000 were active (i.e. completed a minimum of 10 revenue-generating transactions in a 30-day period).
The company’s Nigerian mobile money payment service bank (MoMo PSB) commenced operations in May 2022 with its primary focus on accelerating mobile money adoption, getting existing over-the-counter (OTC) platform users to own a wallet, and expanding services to new users of fintech offerings.
Although MTN’s MoMo PSB suffered a security breach that cost the company 22 billion naira ($53 million), the mobile money service has registered a total of 4.2 million users, of which 2.4 million were active users in the six weeks from launch to the end of the first 6 months of 2022.
The company also reports making significant progress in expanding its payments and e-commerce ecosystem with gross merchandise value (GMV) of mobile money payments growing 88.7% year-on-year to $7.9 billion.
The group’s total value of transfers grew by 4.5% to $1.1 billion, while BankTech services facilitated a total loan value of $560.3 million, up 35.5% year-on-year.
Elsewhere in its financial results, MTN’s insurtech platform reached 17.9 million registered policies, up 31.9%. Digital services revenue rose 6.7% to $97 million, and super app Ayoba grew its user base to 14.9 million thanks to an 87.4% year-over-year increase in monthly active users (MAUs).
Data revenue and data traffic grew by 35.9% and 43.3% respectively during the first 6 months of 2022. This growth was supported by 14.2% year-on-year growth in active data subscribers and 25.5% increase in data usage (at 7.6 GB per user per month).
MTN’s fiber unit MTN GlobalConnect signed fixed external infrastructure deals worth $8.9 million in total contract value (TCV) and external revenue grew 7.0% year-on-year to $151.4 million, with mobility revenue up 6%.
