MTN records GHS 1.7bn net profit, pays GHS 2.7bn in direct and indirect taxes in Q2 2023
MTN Ghana has reported impressive financial results for the first half of 2023 bolstered by strong revenue growth and strategic network investments.
Profit after tax for H1 2023 surged impressively by 27.9% to reach GHS1.7 billion, while EBITDA experienced robust growth of 29.4% YoY, reaching GHS3.5 billion albeit with a slight 1.3% dip in EBITDA margin to 56.1%.
The telecom company navigated the challenges posed by a 36.5% YoY increase in total costs, primarily driven by elevated inflation in H1 2023. With an unwavering focus on expense efficiency, MTN Ghana remains committed to managing costs to mitigate the impact of prevailing macroeconomic dynamics on its operations.
MTN Ghana’s commercial prowess manifested in a remarkable 32.3% YoY surge in service revenue, fueled by impressive growth across voice, data, and mobile money (MoMo) services. The company’s data revenue witnessed an exceptional growth rate of 41.0% YoY, scaling to GHS2.6 billion, benefiting from increased active users, higher data traffic, and the successful implementation of first-quarter price revisions.
MoMo revenue soared by an impressive 48.8% YoY, reaching GHS1.3 billion, as a result of burgeoning cash-out and advanced services revenue. Although peer-to-peer (P2P) revenue experienced a slight decline of 4.8% YoY, MTN Ghana remains optimistic about the continuous growth prospects of its mobile money services.
Digital revenue, on the other hand, faced a 22.1% YoY dip to GHS63.6 million, as MTN Ghana continued its portfolio rationalization efforts. The company expects this initiative to culminate in a return to positive growth in digital revenues by 2024.
Despite contending with disconnections resulting from SIM registration directives, voice revenue soared by an impressive 13.9% YoY to GHS1.8 billion, driven by effective customer value management strategies. To further diversify its revenue streams, MTN Ghana strategically reduced voice revenue contribution to service revenue, now standing at 29.1%, aligning with the company’s revenue diversification strategy.
As part of its commitment to contributing to the nation’s development, MTN Ghana played its part by contributing GHS2.7 billion in direct and indirect taxes, in addition to GHS228 million in fees, levies, and other payments to governmental agencies during H1 2023.
MTN Ghana’s network expansion efforts were substantiated by a GHS2.2 billion investment in capital expenditures. The telecom giant grew its 4G coverage to a staggering 99.3% of the population and unveiled 156 2G, 159 3G, and 156 4G sites in H1 2023. The substantial YoY growth in capital expenditures was attributed to spectrum licenses acquisition, accelerated infrastructure deployment, and increased IFRS16 lease costs due to inflation-induced escalations on tower lease agreements.
The remarkable financial performance and strategic network investments underscore MTN Ghana’s unwavering commitment to delivering cutting-edge and reliable services to its 27.3 million subscribers, solidifying its position as a leading player in the fiercely competitive telecommunications landscape in Ghana.
