MTN Group, Africas largest mobile operator, has unveiled a tale of two halves in its latest financial results. While the traditional telecommunications business grapples with the twin challenges of a plummeting Nigerian Naira and dwindling voice revenues, the fintech arm has emerged as a beacon of hope, propelling the company forward.
The Johannesburg-listed telecom giant reported a 20.8% year-on-year decline in group service revenue, largely attributed to the 52.9% drop in service revenue from its vital Nigerian operations, where the local currency has plummeted over the past year.
This saw MTN Group report a loss of USD 414.7 M in the six months through June; its first reported loss since it was slapped with a USD 1 B fine by the Nigerian government eight years ago.
While this paints a concerning picture of the headwinds facing the core business, MTNs fintech division has, amid the gloom, demonstrated remarkable resilience and growth.
Fintech revenue soared by 27.2% year-on-year, a testament to the strategic shift the company is undertaking. "Fintech revenue increased by 27.2% year on year, in line with our medium-term guidance, with strong performances in Ghana, Uganda and Cameroon," MTN stated. This growth trajectory is particularly impressive given the broader economic challenges.
