MTN grows net assets value by 539%; net profit by 278% in 5 years
Telecommunication giant MTN Ghana has achieved remarkable financial success over a five-year period, as highlighted in the company’s recently published 2023 annual report. With significant increases in net profit and asset value, coupled with robust operational performance.
Explosive Profit Growth
MTN Ghana’s net profit witnessed a remarkable surge from GHS 754 million in 2018 to a staggering GHS 2.8 billion in 2022. This extraordinary growth in profitability demonstrates the company’s ability to navigate the competitive landscape while delivering value to its shareholders. By leveraging its strengths and strategic investments, MTN Ghana managed to capitalize on emerging opportunities in the telecommunications market, cementing its position as a major player in the industry.
Exponential Asset Value Growth
Over the same five-year period, MTN Ghana experienced an exponential increase in its asset value, soaring from GHS 3.4 billion in 2018 to an impressive GHS 22 billion in 2022. This surge was largely propelled by the exceptional performance of its mobile money subsidiary, which alone was valued at GHS 11.6 billion in 2022. The success of this subsidiary not only contributed to the growth in asset value but also solidified MTN Ghana’s position as a dominant force in the mobile financial services sector.
Operational Excellence
MTN Ghana’s operational performance has been a key driver of its financial success. At the close of March 2023, the company reported a noteworthy 16.4% increase in earnings before interest, tax, depreciation, and amortization (EBITDA), reaching GHS 1.6 billion. This impressive growth can be attributed to the company’s exceptional service revenue, which experienced a significant uptick of 23.2% to GHS 2.9 billion during the same period. MTN Ghana’s ability to generate substantial revenue from its services underscores its capacity to meet the evolving needs of its customer base.
Challenges and Profitability Pressures
Despite the overall positive performance, MTN Ghana faced challenges in maintaining profitability. The company’s EBITDA margin witnessed a decline of 3.2 percentage points, settling at 56.3%. This margin contraction indicates some pressures on the company’s profitability, which can be attributed to the substantial investments made in network infrastructure and services as part of its Ambition 2025 strategy. While these investments may have temporarily impacted profitability, they reflect MTN Ghana’s commitment to unlocking long-term value for its stakeholders.
Commitment to Growth and Value Creation
MTN Ghana’s commitment to growth and value creation is evident in its financial statements. The company reported a profit after tax of GHS 745 million in March 2023, marking an increase from the GHS 707 million recorded in the same period of the previous year. Moreover, MTN Ghana’s dedication to enhancing its services and network infrastructure is reflected in its substantial capital expenditure of GHS 1.1 billion. These investments underline the company’s resolve to cater to its expanding customer base and solidify its position as a market leader.
Expanding Customer Base
MTN Ghana experienced growth across all key customer metrics during the review period. Mobile subscribers increased by 1.4% to reach an impressive 27.4 million, while active data subscribers witnessed an 8.4% rise, reaching 13.9 million. Furthermore, active Mobile Money (MoMo) users surged by 15.9% to reach a substantial 13.4 million.
