MTN Fintech Revenue Hits N70.6 Billion in One Year as Subscribers Increases to 9.4 Million

MTN Fintech Revenue Hits N70.6 Billion in One Year as Subscribers Increase to 9.4 Million

Bukola Olanrewaju January 31, 2022 TECHNOLOGY, Telecom Leave a comment

In its audited results for the financial year ended 31 December 2021, MTN Nigeria Plc has announced a 57.3% growth in its fintech revenue from N44.847 billion to N70.553 billion in one year.

The telecommunications company further disclosed that for the fourth quarter (Q4 2021), its recorded N20.317 billion as fintech revenue as against N12,479 billion made in Q4 2020 representing a 62.8% increase.

According to the company’s earnings release, active fintech subscribers rose by 4.8 million to 9.4 million, reflecting a 95.83% growth in subscribers during the period.

In addition to this, despite the decline in mobile subscription base, driven by regulatory restrictions on new SIM sales and activations mainly in Q1 through Q3 2021, the company returned to positive growth in Q4 as mobile subscribers increased by approximately 1 million during the period.

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Speaking on this, the Chief Executive Officer, MTN Nigeria, Karl Torila stated the fintech revenue rose by 57.3% due to sustained growth in the use of the company’s Xtratime product and broader fintech services by our customers.

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“We expanded our MoMo agent network, through our one distribution strategy, with the addition of over 374k registered agents bringing the total number to approximately 770k, up 94.8%.

“As a result, Mobile Money transaction volume rose by 167.0% to 137.5 million from an active user base of 9.4 million, up 102.0%.

“Additionally, the Approval in Principle we recently obtained in relation to our MoMo PSB licence application is an important step towards final approval, which will allow us to expand our service offerings and scale our fintech business, thereby achieving more meaningful financial inclusion in the country.

He added that in recognition of the progress in the fintech space, MTN Nigeria received a US$500,000 grant from the African Development Bank (AfDB)to fund research on financial inclusion for women.

Driven by the strong operational performance, we delivered growth across all revenue lines, demonstrating the underlying strength and momentum of the business. Service revenue grew by 23.3%%, exceeding our mid-teen target, driven mainly by growth in voice, data and fintech service revenue lines.

Service revenue grew by 23.3% to N1.7 trillion, exceeding the group’s mid-teens target, driven mainly by voice, data and fintech services. MTN has now decided revised the medium-term target for service revenue growth to north of 20%, suggesting there’s momentum behind the latest performance.