MTN Ghana delivered a strong performance in its first quarter, with profit rising almost 50% as service revenue grew by 32.4%.
Details
- MTN’s total revenue for the quarter to end-March was 32.5% higher at GHC 3.85 Billion, while profit after tax rose to GHC 1.11 Billion from GHC 745.4 million a year ago.
- MTN’s service revenue grew by 32.4% to GHC 3.83 Billion.
- Mobile subscribers increased by 1.2% to 27.8 million and active data subscribers rose by 15.3% to 16 million.
- Active Mobile Money (MoMo) users increased by 16.1% to 15.6 million.
Between The Lines
CEO Stephen Blewett said the group had operated in a challenging economy in an election year. Inflation remained relatively high, though on a generally declining trend, with the average inflation rate within the first quarter of 24.2%.
What They’re Saying
“MTN Ghana continued to deliver on its Ambition 2025 priorities, despite the challenges from the macroeconomic headwinds affecting business operations and expenses. These include driving top-line growth and cost efficiencies, as well as creating shared value for all stakeholders,” said Blewett.
“These efforts underpinned a strong first quarter 2024 result, with service revenue growth of 32.4% year-on-year and a resilient EBITDA [earnings before interest, taxes, depreciation, and amortisation] margin.”
MTN’s EBITDA margin for the period was 55.9% from 56.3% a year ago.
What Happens Next
MTN expects the macroeconomic outlook for Ghana for the rest of 2024 to remain challenging due to high inflation, currency volatility, and foreign exchange scarcity.
MTN Ghana will continue to invest to develop its platforms, improve its network and services, and unlock value for stakeholders in line with its Ambition 2025 strategy.
“We continue to explore efficiency measures, preserve liquidity, and strengthen the balance sheet against a background of election-year-related and macroeconomic uncertainties,” the company stated.
Source: Business Live
Catch up on news and other tidbits on our WhatsApp Community Page, Twitter/X, and subscribe to our weekly newsletter to ensure you don’t miss out on any news.
