Taxes and Levies Wipe Away 51% of MTN Ghana’s GHS 12.7 Billion Revenue for Q3 2024
Telecommunication giant, MTN Ghana, has made payments totaling GHS 6.1 billion in direct and indirect taxes to Government for the third quarter of 2024.
This is aside from the GHS 455.9 million fees and levies payment made to Government agencies within the review period.
Per the company’s third-quarter financial results, payments made to the Government and its agencies through taxes, fees and levies formed 51% of its total revenue for the third quarter of 2024.
Despite the huge cut in revenue, MTN Ghana managed to post profit-after-tax of GHS 3.8 billion, marking a 35.5% YoY increase when compared to the GHS 2.77 billion profit-after-tax recorded in Q3 2023.
Service revenue for the third quarter of 2024, according to MTN Ghana grew by 32% year-on-year to GHS12.7 billion driven by increased revenues from data, MoMo, and digital services and supported by investments that enhanced 4G connectivity.
Additionally, MTN Ghana’s subscriber base expanded by 10.8% YoY to 28.6 million within the review period.
Giving a breakdown of the GHS 12,7 billion recorded service revenue for the review period, MTN noted data revenue recorded a 53.4% YoY growth to GHS 6.3 billion due to improvements in the network and connectivity, which supported a 17.3% YoY increase in active data subscribers.
Mobile Money revenue also increased by 50.8% YoY to GHS 3.1 billion supported by growth of 79% YoY in advanced services revenue and a 41.8% YoY growth in basic revenue comprising of cashout and peer-to-peer (P2P) revenue.
Digital revenue also continued to grow strongly, increasing by 65.6% YoY to GHS 160 million driven by a 21.5% YoY increase in active subscribers as well as usage of products and services, leading to higher revenue from video, gaming, and ring-back tones.
However, voice revenue decreased by 3.4% YoY to GHS2.6 billion as customers continued to opt for lower-priced plans and switch from traditional calls to Voice over Internet Protocol (VoIP) due to increased data adoption.
On its outlook for next year, MTN Ghana noted that it will continue to invest to develop its platforms and improve its network and services to unlock value for stakeholders in line with its Ambition 2025 strategy.
