MTN Ghana posts double-digit growth in Q3

1st November 2023

By: Natasha Odendaal

Creamer Media Senior Deputy Editor


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Telecommunications group MTN Ghana has posted double-digit growth in earnings before interest, taxes, depreciation and amortization (Ebitda), profit after tax, revenue and service revenue for the nine months to September 30, 2023.

During the period under review, the company’s Ebitda increased 32.6% year-on-year to GHS5.4-billion, with a margin decline of 1.5 percentage points to 56% owing to the impact of elevated inflation.

According to the group’s trading update, released on Tuesday evening, the average rate of inflation for the nine-month period was 44.3%, higher than the 25.9% reported in the comparative nine-month period in 2022; however, during the third quarter, inflation declined from the June 2023 level of 42.5% to 38.1% in September.

Profit after tax for the period expanded 32% to GHS2.8-billion, while profit before tax increased 29.9% to GHS3.9-billion.

MTN Ghana also reported a 36.1% increase in revenue to GHS9.7-billion and a 36% increase in service revenue to GHS9.6-billion.

The rise in service revenue was driven by a 14.5% increase in voice revenue to GHS2.7-billion, a 47.6% growth in data revenue to GHS4.1-billion and a 51.6% increase in Mobile Money (MoMo) revenue to GHS2.1-billion.

Voice revenue contribution to MTN Ghana’s service revenue declined from 33.4% to 28.1%, while the contribution of data revenue and MoMo to service revenue increased from 39.5% to 42.8% and by 19.1% to 21.3%, respectively.

Digital revenue, meanwhile, decreased by 15% to GHS96.3-million, with a declining contribution to service revenue from 1.6% to 1%.

While active MoMo users increased by 16.3% to 14.4-million and active data subscribers increased by 2.7% to 14.5-million, mobile subscribers decreased by 9.3% to 25.8-million, impacted by SIM re-registration, during the period under review.

During the nine months to September, MTN Ghana sustained its investments in capital expenditure (capex) to support improvements in service quality and the expansion of network capacity and coverage, with total capex of GHS2.9-billion. Core capex, excluding right-of-use cost, was GHS2.2-billion.

As part of the network expansion plan, MTN Ghana deployed 193 second-generation, 196 third-generation and 193 fourth-generation (4G) sites, reaching a total of 4 455 4G sites nationwide with 4G coverage at 99.3%.

“MTN Ghana will continue to invest to develop its platforms and improve its network and services to unlock value for stakeholders in line with our Ambition 2025 strategy. We will also keep exploring efficiency measures, preserving liquidity and take steps to strengthen the balance sheet further against a background of uncertainties within the operating environment,” the company said in the statement.

“Taking into consideration the macroeconomic uncertainties, MTN Ghana maintains its guidance of high-twenties (in percentage terms) growth in service revenue.”

Edited by Creamer Media Reporter



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