Telecoms: MTN Cameroon achieved a turnover of 316 billion CFA francs in 2023 (+28%)
In the dynamic and competitive world of telecommunications, MTN Cameroon has emerged as a formidable player, achieving a remarkable turnover of 316 billion CFA francs in 2023, marking a significant 28% increase from the previous year. This impressive growth not only highlights the company’s robust market presence but also underscores its strategic initiatives that have successfully captured the evolving needs of consumers in Cameroon.
African telecommunications giant MTN published its financial statements for the year 2023 on Monday. In Cameroon, the subsidiary of the South African group achieved a turnover of 9.905 billion rand, or 316.4 billion CFA francs (at the current value of the rand) during the period under review, according to data consulted by EcoMatin. Compared to the previous year, this figure is up 28.2% compared to the 7.727 billion rand (nearly 246.6 billion CFA francs) achieved in 2022.
MTN Cameroon’s upward performance is, however, below that of its subsidiaries in Ghana and Côte d’Ivoire, which respectively achieved a turnover of 20.77 billion rand (661.3 billion CFA francs) and 10.30 billion rand (328.02 billion CFA francs). Nevertheless, in Cameroon, the telecommunications market remains dominated by MTN. The operator has the largest customer base in the country with nearly 11 million subscribers, or just over 51.6% of the market share, with the remainder being shared among its various competitors.
If the available data does not specify the most dynamic segments (calls, Internet or financial services such as Mobile Money), the fact remains that the Cameroonian subsidiary of the South African giant has managed to consolidate its leadership in a context marked by a legal battle with Cameroonian businessman Baba Ahmadou Danpullo, without seeing its results affected. “MTN Cameroon remains operational and present on the ground. Subscribers, Cameroonian users continue to appreciate MTN services, reassures an executive of the telecommunications company. The context linked to the legal case that we know is limited to banks; it has nothing to do with the deployment of MTN which has the best deployment and the best network in the country, and in which Cameroonians continue to place their trust.”
MTN Group revenues up 13.5%
As evidence of the company’s financial health, MTN Cameroon’s performance has contributed significantly to the group’s growth. According to data provided by the South African telecommunications operator, its revenues increased by 13.5% to reach 210 billion rand (6,680.1 billion FCFA). This growth is largely attributed to data revenues, which represent 84 billion rand (2,672 billion FCFA), and voice revenues, contributing 83 billion rand (2,640.2 billion FCFA).
A Closer Look at the Numbers
The reported turnover of 316 billion CFA francs is a testament to MTN Cameroon’s strong performance in a challenging economic environment. According to data released on the Johannesburg Stock Exchange, MTN Cameroon’s revenue for 2023 was CFA325.7 billion, indicating a 10.9% increase from 2022. This acceleration in growth and performance is particularly noteworthy given the global and regional macroeconomic conditions that businesses have had to navigate.
Driving Factors Behind the Success
Several key factors have contributed to MTN Cameroon’s success in 2023. Internet connection services have become a significant driver of revenue, accounting for nearly 38.4% of the total revenues. For the first time, these services have surpassed direct call services as the leading contributor to MTN’s revenue in Cameroon. The company has also made significant strides in its fintech services, including credit lending, which surged by nearly 44.5% to reach CFA57.5 billion.
The Role of Data and Fintech Services
Data and fintech services combined have formed a substantial portion of MTN Cameroon’s total income, rising from 51.4% in 2022 to 52.13% in 2023. This shift reflects the growing trend of digitalization and the increasing reliance on mobile technology for financial transactions. MTN Cameroon’s ability to adapt and innovate in these areas has been crucial in maintaining its competitive edge.
Subscriber Growth and Revenue Per User
MTN Cameroon boasted a record 5.8 million active internet subscribers and 5.6 million active Mobile Money users in Cameroon by the end of December 2023. These figures represent the highest levels in five years, demonstrating the company’s successful expansion of its customer base. Additionally, the average revenue per user in Cameroon reached a new high of CFA2542.02 in 2023, further solidifying MTN’s position in the market.
Challenges and Future Outlook
Despite the favourable outcomes, MTN Cameroon faces ongoing challenges, particularly in the internet market where consumer grievances regarding service quality persist across all providers. Moreover, the company is involved in legal proceedings related to a dispute involving Baba Danpullo’s holding company, Bestinver, and its South African banker, First National Bank.
Conclusion
MTN Cameroon’s performance in 2023 is a clear indicator of the company’s resilience and strategic vision. With a focus on expanding data and fintech services, MTN has not only achieved financial success but also played a pivotal role in driving digital transformation in Cameroon. As the company navigates through market challenges and legal complexities, its continued growth and innovation will be essential in maintaining its leadership position in the telecommunications sector.
