MTN targets rural penetration as energetic MoMo wallets decline to 2.1 million in Q1 2025
MTN Nigeria is recalibrating its fintech technique with a deal with deepening penetration in rural areas as its MoMo PSB energetic wallets declined to 2.1 million in Q1 2025.
This represents a 55.6% decline year-on-year in contrast with the 4.8 million recorded in Q1 2024, and a 25% decline quarter-on-quarter because the fintech’s energetic wallets stood at 2.8 million in This fall 2024.
For the primary quarter of 2025, MTN, in its unaudited {financial} outcome,s mentioned it strategically targeted on enhancing the standard of its ecosystem, which led to a decline in energetic wallets.
“This enabled us to onboard extra high-value clients and enhance float ranges, thereby enhancing the general well being and sustainability of the ecosystem,” the corporate acknowledged.
Rural penetration technique
Commenting on the corporate’s outcome, MTN Nigeria CEO, Karl Toriola, mentioned the corporate, as a part of its long-term ambition to drive {financial} inclusion, can be launching a rural penetration technique aimed toward increasing entry to {financial} providers for underserved and financially excluded communities.
“We at the moment are ready to speculate and intensify qualitative area acquisition efforts, significantly in rural and underserved areas, in keeping with our {financial} inclusion aims.
“These efforts are aligned with our strategic goal to construct a extra strong, inclusive, and scalable digital {financial} ecosystem,” Toriola acknowledged.
In the meantime, MTN reported that the variety of brokers and retailers on the MoMo community elevated by 47.7% and 23.6%, respectively, in comparison with December 2024.
Fintech income progress
Regardless of the decline in MoMo wallets, MTN recorded a 57.9% enhance in its fintech income, pushed largely by its airtime lending product (Xtratime).
- The corporate’s fintech income jumped from N22.8 billion in Q1 2024 to N36 billion in Q1 2025.
- The corporate mentioned this progress was additionally boosted by larger float earnings, supported by the onboarding of high-value clients.
- It added that the revamp of its buyer acquisition technique, which commenced in Q3 2024, allowed the corporate to additional optimise its incentives and buyer engagement framework to strengthen qualitative efficiency, deepen service penetration, and improve efficiency monitoring throughout gross sales and distribution channels.
MTN’s digital providers enterprise additionally delivered strong progress of 92.1%, underpinned by elevated demand for wealthy media content material and enhancements to the consumer journey.
Whereas month-to-month energetic customers of wealthy media providers (excluding ayoba) declined by 19.4% to 7.9 million in comparison with December 2024, as a consequence of platform optimisation initiatives, general engagement ranges improved.
This led to robust income progress throughout each wealthy media and value-added providers (VAS).
What it is best to know
Nairametrics earlier reported that MTN Nigeria recorded a N1 trillion income within the first quarter of this 12 months, buoyed by the current tariff increment applied in the midst of February 2025.
In contrast with the N752.9 billion recorded in Q1 2024, this represents a 40.5% enhance in income year-on-year, even because the affect of the tariff adjustment has but to be absolutely realized.
The corporate bounced again to profitability within the quarter, posting N133.7 billion revenue after tax in contrast with the N392.7 billion loss it recorded in Q1 2024.
