MTN Ghana, the leading telecommunications operator in the country, has reported a significant boost in profit and revenue for the first half of the year. The company's stellar performance can be attributed to the impressive growth in voice, data, and Mobile Money revenue. As a result, MTN Ghana has revised its medium-term guidance and expects a high-20s percentage growth in service revenue.
In the first six months of 2023, MTN Ghana recorded a pretax profit of GH₵2.44 billion ($213.6 million), a substantial increase compared to GH₵1.68 billion achieved in the same period last year. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw improvement, reaching GH₵3.47 billion, up from GH₵2.68 billion in the previous year.
Total revenue for the company reached GH₵6.18 billion, a notable surge from GH₵4.67 billion in the previous year. Service revenue experienced exceptional growth, witnessing a 32% increase and reaching GH₵6.16 billion in the first half of the year.
MTN Ghana attributes its outstanding performance to the expansion of network capacity and coverage, as well as the enhancements in IT systems and service delivery. These factors have contributed to the increased usage of the company's services by its 27.3 million subscribers across Ghana.
The growth in data revenue is particularly noteworthy, with a 41.0% increase year on year, reaching GHS 2.6 billion. This growth can be attributed to the rise in active users, increased data traffic, and effective price revisions. Similarly, Mobile Money revenue saw a significant growth of 48.8% year on year, totaling GH₵1.3 billion, driven by cash-out revenue and advanced services revenue.
However, digital revenue experienced a decline of 22.1% year on year, amounting to GH₵63.6 million. MTN Ghana has already initiated portfolio rationalization initiatives to improve digital services and aims to return to positive growth in digital revenues by 2024.
MTN Ghana remains committed to managing expenses effectively to mitigate the impact of macroeconomic dynamics on the business. The company has also made investments in property, plant, and equipment, leading to increased depreciation charges.
With the exceptional growth in voice, data, and Mobile Money revenue, MTN Ghana has revised its medium-term guidance to anticipate a high-20s percentage growth in service revenue. The company's financial performance reflects its strong position in the telecommunications industry and its commitment to delivering exceptional services to its customers.