Cameroon: MTN achieves a turnover of 181 billion CFA francs in the first half driven by internet and fintech services

This performance represents an increase of 16% compared to the same period in 2023.

In the dynamic landscape of Cameroon’s telecommunications sector, MTN Cameroon has emerged as a formidable player, achieving a remarkable turnover of 156 billion CFA francs in the first half of 2023. This represents a significant 9.2% increase year-on-year, a commendable feat considering the backdrop of soaring inflation rates, which hovered close to 8% in May 2023.

The growth trajectory of MTN Cameroon can be attributed to several factors, but two segments stand out: internet and fintech services. According to MTN’s data, the internet penetration rate in Cameroon reached an impressive 76%, which has undoubtedly played a pivotal role in this growth. Moreover, the company’s strategic position in the telecommunications sector, with an estimated 51.6% market share, underscores its dominance and the trust consumers place in its services.

However, the journey has not been devoid of challenges. MTN Cameroon faced a legal dispute with Cameroonian businessman Baba Ahmadou Danpullo, which led to the seizure of the company’s bank accounts. Despite this, MTN Cameroon has shown resilience and adaptability, borrowing 91.5 billion CFA francs to finance its activities and maintain its investment plans.

Looking ahead, MTN Cameroon has announced ambitious investment plans over the next three years, amounting to over 135 billion CFA francs. These investments aim to enhance technology and network services and bolster the fintech business through Mobile Money Corporation. Such forward-thinking initiatives are indicative of MTN Cameroon’s commitment to not only sustaining its growth but also contributing to the technological advancement of Cameroon.

The company’s performance in the first half of 2023 is a testament to its operational excellence and strategic vision. As MTN Cameroon navigates through the complexities of the market and regulatory environment, its ability to innovate and invest in key growth areas will likely continue to drive its success. The telecommunications giant’s focus on internet and fintech services is not just a business strategy but also a contribution to the digital transformation of Cameroon, paving the way for a more connected and financially inclusive society.

Between January and June 2024, MTN Cameroon recorded a turnover of 181 billion CFA francs, according to financial data provided by the company. This performance represents an increase of 16% compared to the same period in 2023. This result was mainly driven by Internet connection services, which generated 72.8 billion CFA francs, or 40% of total turnover. Fintechs (mobile money) also played a significant role in this growth, contributing 35 billion CFA francs, which represents 19.3% of revenues.

“MTN Cameroon recorded satisfactory growth in its service revenues of 12.9%, outperforming local inflation of 6.2%, and maintained its leadership position in a challenging and highly competitive market. Customer Value Management (CVM) initiatives led to solid growth in data services revenues (up 19.2%) and fintech services (up 27.4%), despite increased price competition,” the group said.

In the Cameroonian market, MTN remains a major player, being the second largest market in the CFA franc zone of the group after Côte d’Ivoire (with 17 million subscribers compared to 12 million for Cameroon). It should be recalled that at the end of 2023, MTN Cameroon recorded a turnover of 316 billion CFA francs, up 28.2% compared to the 7.727 billion rand (approximately 246.6 billion CFA francs) achieved in 2022.

To strengthen its market position, the MTN group announced in 2023 an investment of more than 136 billion FCFA in Cameroon over the next three years. This was stated by Ralph Mupita, chairman of the group, during an audience with Prime Minister Joseph Dion Ngute, on August 25, 2023, in Johannesburg, on the sidelines of the 15th BRICS summit (Brazil, Russia, India, China and South Africa). These investments will mainly aim to improve the quality of the network.

At the group level, the company reports that “during the first half of 2024, the MTN Group recorded strong commercial momentum, implemented key strategic initiatives and maintained balance sheet strength and resilience. At constant exchange rates, data services revenues increased by 21% in the six months to 30 June 2024, while fintech services revenues increased by 27%.”