MTN posts GHS 745m profit-after-tax; pays GHS 1.1bn in direct and indirect taxes
MTN Ghana, one of the leading telecommunication giants in the country, has continued its growth trajectory as evidenced by its latest financial report. At the close of March 2023, MTN Ghana reported a 16.4% increase in its earnings before interest, tax, depreciation and amortization (EBITDA) to GHS 1.6 billion. This growth was driven by the company’s impressive service revenue which rose by 23.2% to GHS 2.9 billion.
Despite this impressive growth, MTN Ghana’s EBITDA margin decreased by 3.2 percentage points (pp) to 56.3%, indicating some pressures on the company’s profitability. This decline may have been due to the company’s investment in its network and services to unlock value for stakeholders in line with its Ambition 2025 strategy.
In its pursuit of growth and value creation for its stakeholders, MTN Ghana recorded a profit after tax of GHS 745 million, an increase from the GHS 707 million recorded in March 2022. The company’s total capital expenditure for the period under review was GHS 1.1 billion. This significant investment underscores the company’s commitment to developing its platforms and improving its network and services to better serve its growing customer base.
MTN Ghana’s customer base grew across all its key metrics within the review period. Mobile subscribers increased by 1.4% to 27.4 million, active data subscribers increased by 8.4% to 13.9 million, and active Mobile Money (MoMo) users increased by 15.9% to 13.4 million. This growth is a testament to the company’s ability to offer innovative products and services that meet the evolving needs of its customers.
As a responsible corporate citizen, MTN Ghana paid GHS 1.1 billion in direct and indirect taxes as at the end of March 2023, indicating its commitment to fulfilling its tax obligations to the state.
Looking ahead, MTN Ghana remains focused on pursuing its Ambition 2025 strategy, which seeks to position the company as a leading digital services provider in Ghana. The company intends to continue investing in developing its platforms and improving its network and services, while exploring efficiency measures to preserve liquidity and strengthen its balance sheet against a background of macroeconomic uncertainties.
Despite some macroeconomic challenges, MTN Ghana maintains its medium-term guidance of low-twenties (in percentage terms) growth in service revenue. The company’s growth trajectory remains impressive, and it is well-positioned to continue delivering value for its stakeholders in the years ahead.
