MTN records 42.7% YoY profit increase; pays GHS 3.7bn in taxes for 2022
MTN Ghana, has announced a strong financial performance for 2022.
According to the company’s audited financial report, MTN Ghana recorded a 42.7% year-on-year growth in profit, reaching ¢2.85 billion. The company’s service revenue also grew by 28.3% to ¢9.9 billion.
This strong performance was supported by effective subscriber management during the national SIM re-registration program, increased investment in the network, and the diligent execution of commercial initiatives in voice, data, and Mobile Money services.
The company added 3.3 million subscribers to its subscriber base, bringing the total to over 25 million subscribers. MTN Ghana also invested ¢2.1 billion in total capital expenditure to support the modernization of infrastructure, improve IT systems, and expand network capacity and coverage across the country.
Despite a challenging economic environment in Ghana, with high levels of inflation and the sharp depreciation of the Ghanaian cedi against key currencies, MTN Ghana’s earnings before interest, tax, depreciation and amortization (EBITDA) increased by 30.9% to ¢5.6 billion.
MTN Ghana’s commitment to social responsibility was also evident in its allocation of ¢28.3 million to socio-economic initiatives in 2022. Additionally, the company paid ¢3.7 billion in direct and indirect taxes during the year.
In terms of revenue streams, voice revenue increased by 24.5% year-on-year to ¢3.3 billion. However, the contribution of voice to total service revenue declined from 34.1% to 33.1%. Data revenue was a standout performer for the company, increasing by 39.8% year-on-year to ¢3.9 billion, with its contribution to total service revenue increasing from 36.0% to 39.2% year-on-year.
The company’s Mobile Money (MoMo) revenue suffered after the implementation of the electronic transaction levy in May 2022, but MTN Ghana was able to expand the MoMo ecosystem by growing active MoMo merchants and agents. Active MoMo users also increased by 15.0% year-on-year. Digital revenue, however, declined by 18.8% year-on-year to ¢144 million due to a decrease in active digital subscribers.
The company’s management has expressed satisfaction with the results and noted that the growth in subscriber numbers and revenue is a testament to the company’s commitment to providing excellent service and innovative products to its customers.
MTN Ghana’s commitment to social responsibility and investment in the country’s infrastructure and economy is noteworthy. The company’s investment in modernizing infrastructure, improving IT systems, and expanding network coverage and capacity is likely to benefit the country in the long term, creating jobs and contributing to economic growth.
Despite the challenges faced by Ghana’s economy in 2022, MTN Ghana remains committed to its Ambition 2025 strategy and will continue to invest to drive growth. The company’s strong financial performance is a testament to its resilience and ability to adapt to changing market conditions, and bodes well for the future of the company and the country’s economy.
