MTN records GHS 2.8bn profit-after-tax for Q3 2023
MTN Ghana for the third quarter of 2023 recorded profit after tax of GHS 2.8bn representing a 32% year-on-year growth in net profit.
Earnings before interests, taxes, depreciation and amortisation (EBITDA) of MTN increased by 32.6% YoY to GHS 5.4 billion with a margin decline of 1.5 percentage points to 56.0% due to the impact of elevated inflation.
MTN’s voice revenue within the review period grew by 14.5% YoY to GHS 2.7 billion. The impact of the National Communications Authority’s (NCA) directive on SIM disconnections continued to impact the company’s subscriber base, resulting in a 9.3% YoY decrease to 25.8 million. Hence voice revenue contribution to service revenue declined from 33.4% to 28.1%.
The company recorded data revenue growth of 47.6% YoY to GHS 4.1 billion attributable to a 2.7% YoY increase
in the number of active users and continued increases in MB data consumed per active user per month (+36.0% YoY).
This led to data traffic rising by 39.6% YoY. The contribution of data revenue to service revenue increased from 39.5% to 42.8% YoY.
Also, MoMo revenue increased by 51.6% YoY to GHS 2.1 billion. This was underpinned by growth of 63.4% YoY in cash-out revenue, a 63.2% YoY increase in advanced services revenue and 15.0% YoY growth in peer-to-peer (P2P) revenue. The contribution of MoMo revenue to service revenue increased from 19.1% to 21.3% YoY.
According to MTN, total capital expenditure (capex) for the review period was GHS 2.9 billion and as part of its network expansion plan, it rolled out 193 2G, 196 3G and 193 4G sites, reaching a total of 4,455 4G sites nationwide with 4G coverage at 99.3%. The company’s core capex excluding Right-of-Use cost was GHS 2.2 billion.
Speaking on the company’s outlook for the rest of 2023, CEO of MTN Ghana, Selorm Adadevoh noted, “the company remains cautious about the outlook for the rest of the year in view of elevated inflationary pressures,
although we are hopeful that the decreasing trend recorded in the latter part of the third quarter will
continue throughout the fourth quarter. However, there are some ongoing risks including geopolitical
developments, the potential for further increases in utility tariffs following the 4.2% and 1.2% increase
in electricity and water rates respectively from 1 September 2023 and IMF programme reforms such
as subsidy removals, among others.”
“Against this backdrop, MTN Ghana will continue to preserve liquidity, strengthen the balance sheet
and explore cost-mitigating initiatives through its expense efficiency programme. MTN Ghana will
deploy prudent commercial initiatives that support business sustainability in the short to medium
term. Having considered the prevalent and potential impact of high inflation, Ghana’s debt sustainability
and seasonal currency volatility, MTN Ghana will maintain its guidance of high-twenties (in percentage
terms) growth in service revenue,” he added.
