By Milcah Tanimu
MTN Nigeria has announced a significant milestone for its MoMo Payment Service Bank (PSB), reporting 5.5 million active wallets in the second quarter of 2024. This marks a substantial recovery from a 9% decline in Q1, attributed to the National Identification Number (NIN) requirement for Know Your Customer (KYC) validation.
According to MTN’s half-year 2024 financial results released on Wednesday, MoMo active wallets saw an increase of 701,000 in Q2.
Financial Highlights
MTN’s fintech revenue experienced an 11% growth in the first half of the year and a notable 22.2% increase in Q2. Revenue jumped to N48.6 billion, up from N43.6 billion in the same period last year, driven by the airtime lending product Xtratime and the growing adoption of MoMo services.
Despite this success, the total number of MoMo agents facilitating OTC transactions decreased by 24,000 to 302,800. However, the number of agents excluding OTC transactions remained stable at 239,000. The company also onboarded over 174,000 new merchants, expanding its merchant ecosystem to approximately 498,000.
### Digital Services Surge
MTN’s digital services revenue saw an impressive 98.9% growth in the first half of 2024, thanks to increased adoption of digital products and expanded partnerships with content providers. The active user base grew by 5.6 million to 19.6 million, with the instant messaging platform Ayoba accounting for 46.5% of the active base at 9.1 million monthly users. Subscriptions for rich media services, including music, video, and gaming, made up 53.5% of the active base.
Revenue and Losses
Despite growth across various segments, including a 12.4% increase in voice revenue and a 54.7% rise in data revenue, MTN posted a pre-tax loss of N175.6 billion for the quarter ending June 30, 2024. The depreciation of the naira between December 2023 and June 2024 led to higher net forex losses of N887.7 billion, resulting in a loss after tax of N519.1 billion compared to a restated loss of N85.6 billion in the previous half-year.
CEO’s Statement
Karl Toriola, MTN Nigeria’s CEO, expressed satisfaction with the Q2 momentum in wallet adoption following Q1’s challenges due to the NIN requirement. He highlighted the fintech revenue growth driven by Xtratime and the expanding MoMo services. Toriola also noted the significant growth in digital services and the ongoing efforts to onboard new partners and expand service offerings to sustain business growth.
MTN Nigeria aims to leverage the positive trends in Q2 to further develop wallets and increase MoMo PSB app adoption while expanding its merchant ecosystem.
