MTN MoMo helps company clock GHS1 billion revenue increase

By: Michael Eli Dokosi   

Data from the Bank of Ghana has shown mobile telecom giant MTN seeing a jump in third-quarter revenue from the previous year; from GHS2.49 billion to GHS3.54 billion ($731.90 million).

The revenue jump is thanks to the nationwide use of its MoMo service used for money transfers and payments using a mobile phone service.

During the quarter, MTN Ghana’s service revenue grew 22.9 percent, its data revenue increased by 30.9 percent and digital revenue rose by 28 percent.

For a public largely skeptical about banking services, the emergence of the MoMo service has been timely helping bank the previously unbanked roping in literates, semi-literates and even non-literates who use the system even if with the aid of others.

Chief Executive Officer of telecom giant, MTN Ghana Selorm Adadevoh

With the state planning to move to a cashless economy, the MoMo service has played its part in helping with timely withdrawals, transfers and deposits with interest earned on money in digital wallets.

In August, MTN Ghana also successfully listed on the Ghana Stock Exchange securing over GH₵1.14 billion in a historic Initial Public Offering (IPO).

Official figures from the IPO indicated that about GH₵444m out of the GH₵1.14 billion (GHp75 per share) raised came from Ghanaians, representing about 38.69%.

About GH₵703 million was also raised from non-Ghanaians representing about 61.31%

The figures showed that out of the 128,152 applicants, 127,826 were Ghanaians and only 326 were non-Ghanaians.

MTN said about 108,434 applicants subscribed through the MTN Mobile Money portal representing 84.6% of the number of applicants.