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MTN Cameroon sees record growth with CFA325.7bn revenue in 2023 amid market challenges

MTN Cameroon sees record growth with CFA325.7bn revenue in 2023 amid market challenges
  • Comments   -   Thursday, 28 March 2024 03:59

(Business in Cameroon) - MTN Cameroon reported a robust revenue of CFA325.7 billion for 2023. According to data released on the Johannesburg Stock Exchange in South Africa, this figure marks a 10.9% increase from 2022, showcasing a notable acceleration in growth and performance.

Analysis by Business in Cameroon reveals that revenues rose by 8.7% in 2022, 2.2% less than last year. MTN Cameroon's revenue substantially outpaced the CFA312.9 billion reported by its main competitor, Orange Cameroon, highlighting the company's dominant market position. A significant driver behind this growth has been internet connection services, which accounted for nearly 38.4% of total revenues. For the first time, these services have overtaken direct call services as the leading contributor to MTN's revenue in Cameroon.

The company also saw significant strides in its fintech services, including credit lending, which surged by nearly 44.5% to reach CFA57.5 billion, based on the conversion rate at the end of the financial year. This is a sharp increase from the 10.2% growth in 2022.

Data and fintech services combined have formed 52.13% of MTN Cameroon's total income, up from 51.4% in 2022, 47% in 2021, and 40.6% in 2020. By the end of December 2023, MTN boasted a record 5.8 million active internet subscribers and 5.6 million active Mobile Money users in Cameroon, marking the highest levels in five years. The average revenue per user in Cameroon reached a new high of CFA2542.02 in 2023.

Amidst this positive trajectory, MTN declared a pre-tax and depreciation profit of CFA123 billion in Cameroon, constituting 37.8% of its revenue, the best margin recorded since 2019. However, despite these favorable outcomes, challenges persist. The internet market faces ongoing consumer grievances regarding service quality across all providers. Furthermore, the South African company is currently embroiled in legal proceedings where its bank accounts were frozen due to a dispute involving Baba Danpullo's holding company, Bestinver, and its South African banker, First National Bank (FNB), a subsidiary of FirstRand Bank (FRB), one of MTN's shareholders.

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