MTN Ghana grows service revenue by a quarter, despite hit from digital transfer levies

MTN’s Mobile Money (MoMo) service in Ghana is taking a hit from the introduction of a levy on electronic transfers which came into effect in May, with revenue from person-to-person (P2P) transactions slipping by double digits in the mobile operator’s nine months to end September.

Ghana’s government has imposed a 1.5% levy on the value of all electronic transfers, including banks, specialised deposit-taking institutions, payment service providers and electronic money issuers, as a means to earn revenue from digital services. The levy is in addition to other applicable charges.

The operator said revenue from P2P transactions declined by 13.3% year-on-year in the three quarters to end September, with the contribution of MoMo to service revenue falling to 19.1% from 22.8% previously. The firm also took a decision to reduce P2P transaction fees by 25% to cushion the effect on its customers.

Despite the challenges, active MoMo users increased by 16.3% to 12.4 million, the firm said, and overall, MTN Ghana’s service revenue grew by 27.9% to 7.1 billion cedi (R9.2 billion).

Data revenue saw the biggest year-on-year jump at 43.7% to 2.8 billion cedi, with data usage jumping by just over half, and the group growing its data subscribers just over a fifth. Voice revenue increased by 23.4% to 2.4 billion cedi. – news24.com