MTN Ghana, a leading telecommunications company, has announced its financial performance for the first nine months of 2023, reporting a profit of ¢2.77 billion, which represents a remarkable 32% year-on-year growth.
The telecom giant achieved a significant 36% year-on-year increase in service revenue during this period, primarily driven by growth in voice, data, and mobile money services. This growth can be attributed to the continued execution of their Ambition 2025 strategy, along with sustained investments in capital expenditure aimed at improving service quality, expanding network capacity, and enhancing coverage.
Mobile voice revenue experienced a 14.5% year-on-year increase, reaching ¢2.7 billion. However, the subscriber base was affected by the National Communications Authority's directive on SIM disconnections, resulting in a 9.3% year-on-year decrease to 25.8 million subscribers. As a result, the contribution of voice revenue to the overall service revenue declined from 33.4% to 28.1%.
Data revenue exhibited substantial growth of 47.6% year-on-year, amounting to ¢4.1 billion. This growth was driven by a 2.7% year-on-year increase in the number of active users and a significant 36% year-on-year increase in data consumption per active user per month. Consequently, data traffic rose by 39.6% year-on-year, with the contribution of data revenue to service revenue increasing from 39.5% to 42.8% year-on-year.
Mobile money (MoMo) revenue recorded an impressive 51.6% year-on-year growth, reaching ¢2.1 billion. This growth was supported by a 63.4% year-on-year increase in cash-out revenue, a 63.2% year-on-year increase in advanced services revenue, and a 15% year-on-year growth in peer-to-peer revenue. The contribution of MoMo revenue to service revenue increased from 19.1% to 21.3% year-on-year.
However, Digital revenue experienced a decline of 15% year-on-year, amounting to ¢96.3 million.
Despite these fluctuations, MTN Ghana observed a positive turn-around in the third quarter, with a 3.5% quarter-on-quarter growth, and expects this growth trajectory to continue through the fourth quarter and beyond.
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The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) showed a significant 32.6% year-on-year increase to ¢5.4 billion. However, due to the impact of elevated inflation, the margin declined by 1.5 percentage points to 56.0%. MTN Ghana remains committed to executing its expense efficiency program to minimize the effects of macroeconomic challenges on the business.
Moving forward, MTN Ghana will continue investing in the development of platforms, network infrastructure, and services to deliver value aligned with its Ambition 2025 strategy. The company will also explore efficiency measures, preserve liquidity, and strengthen its balance sheet to navigate the uncertainties within the operating environment. MTN Ghana maintains its guidance of high-twenties percentage growth in service revenue, taking into consideration the current macroeconomic landscape.
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