Telecom group MTN recorded CFAF156 billion (at the current South African Rand value) in turnover in the first half of 2023, according to information accessed by Business in Cameroon. The turnover is up 9.2% year-on-year against a backdrop of soaring inflation (close to 8% in May 2023) and legal dispute with Cameroonian businessman Baba Ahmadou Danpullo.
The operator was favored by the internet penetration rate, which reached 76% (according to its own data). It also claims a dominant position in the telecommunications sector, with an estimated 51.6% market share. However, the available data do not specify which segments (calls, Internet or financial services such as Mobile Money) have been the most dynamic during the period.
During the period, MTN Cameroon incurred around CFAF93.4 billion in operating expenses. These costs appear to have been boosted by payments to the government and regulatory fees. The company also mentions other increased operating expenses, without providing more details.
Against this backdrop, the company announced a gross operating profit of CFAF56.8 billion, up 12.4% year-on-year. In the first half of 2023, the profit was the best recorded by MTN in all of its subsidiaries in Francophone West and Central Africa, although the highest turnover (CFAF171.8 billion) was achieved in Côte d’Ivoire.
The exact net margin -after depreciation, amortization, and, above all, financial expenses- for the period is still not yet disclosed. According to internal sources, the seizure of MTN Cameroon’s bank accounts by billionaire Baba Danpullo has led the operator to take out unexpected loans, thereby incurring additional financial expenses. Little information is available on this subject, as Cameroon does not require multinationals to publish their financial accounts.
Source: Business in Cameroon