For the third quarter of 2023, MTN Ghana reported a profit-after-tax of GH¢2.8 billion, which represents a 32% year-on-year increase in net profit.
In addition, the earnings before interests, taxes, depreciation, and amortization (EBITDA) of MTN increased by 32.6% YoY to GH¢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 grew by 14.5% YoY to GH¢2.7 billion during the review period. However, the subscriber base declined by 9.3% YoY to 25.8 million due to the impact of the National Communications Authority’s (NCA) directive on SIM disconnections. As a result, the voice revenue contribution to service revenue decreased from 33.4% to 28.1%.
On the other hand, the company recorded data revenue growth of 47.6% YoY to GH¢4.1 billion, which was 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 GH¢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 GH¢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 GH¢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 given 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.