MTN Ghana Achieves 32.3% YoY Growth in Service Revenue, Despite Economic Challenges

Published On: August 28, 2023Company: MTN Ghana (MTN.gh)
What are the main economic challenges highlighted in the MTN Ghana 2023 report?
The main challenges include a high inflation rate averaging 46.2%, currency volatility, and regulatory directives leading to the disconnection of 5.4 million unregistered SIMs. Despite these challenges, the company managed to maintain a growth trajectory in its revenues, continue with social and economic development initiatives, and execute on commercial initiatives in alignment with its Ambition 2025 strategy.

Summary:

  • The macroeconomic environment in Ghana remained challenging in H1 2023, with high inflation rates averaging 46.2%.
  • Despite this, the Ghana cedi relatively stabilized against the US$ helped by lower international crude oil prices and a US$600 million IMF balance support to Ghana.
  • MTN Ghana continued with its Ambition 2025 strategy, focusing on revenue growth and cost efficiencies.
  • The company contributed to social and economic development through initiatives like the construction of a 60-bed maternity and neonatal centre and a STEM robotics lab, expected to be completed in H2 2023.
  • In terms of taxation, MTN Ghana contributed GHS2.7 billion in taxes and GHS228 million in levies and other payments to Governmental agencies in H1 2023.
  • The company’s partnership with AirtelTigo and Vodafone Ghana aimed at achieving universal access and accelerating digitalization is in progress.
  • MTN Ghana reported a YoY growth in service revenue by 32.3%, supported by improvements in network capacity, IT systems, and service delivery.
  • GHS2.2 billion was invested in capex for system enhancement, inclusive of spectrum licenses acquisition and infrastructure deployment.
  • Voice, data, and MoMo revenues all showed significant growth while digital revenue declined as the company executed portfolio rationalization initiatives.
  • EBITDA increased by 29.4%, totaling GHS3.5 billion with an EBITDA margin of 56.1%.
  • Following national regulation, the telecom company disconnected 5.4 million unregistered SIMs, resulting in a decline in the number of subscribers.
  • In line with localization, MTN Ghana achieved 25% localization of Scancom PLC by Q1 2023, which fell to 23.2% by H1 2023 due to shareholders opting for Scrip dividends.

Useful links

About MTN Ghana (MTN.gh)

MTN Ghana is the leading provider of mobile telecommunications services in Ghana. The Company has over 17.83 million subscribers with a market share of approximately 55.09% as at December 2017. MTN Ghana, in line with its vision and mission, continues to lead the delivery of a bold new Digital World to customers and to make their lives a whole lot brighter. MTN Ghana is listed on the Ghana Stock Exchange

Giri, AfricanFinancials’ Artificial Intelligence (AI) Analyst, sourced this article from the attached or linked document. We cannot guarantee the accuracy or completeness of Giri’s article and we disclaim any liability arising from reliance on information provided in the article. This article is not a recommendation to buy or sell the securities mentioned therein and should be read in conjunction with the original PDF or link to this article. Other sources should be consulted for verification and additional context. Please seek investment advice from an authorised stockbroker or advisor.

Giri

Giri, our AfricanFinancials AInalyst, was born in 2006. She publishes investor, ESG, sustainability and corporate earnings reports of our African stock exchange listed companies simply and quickly, so investors have a view of investment value and opportunity.

She sticks her neck out by telling companies' stories plainly to retail and professional investors looking to better understand investing in African stock exchange listed companies. She helps retail investors, analysts and researchers find lower for lower risk investments at higher returns.

So "See the bigger picture" by reading her top-down views. Go long on African equities. Invest for higher returns. Stay on top and tower above the rest.

Related articles