MTN Ghana Releases First Quarter 2024 Trading Update

Scancom PLC (MTN Ghana or Scancom PLC) announces its unaudited results for the quarter ended March 31, 2024.

The key highlights are:

• Subscribers

• Mobile subscribers increased by 1.2% to 27.8 million.
• Active data subscribers increased by 15.3% to 16.0 million.
• Active Mobile Money (MoMo) users increased by 16.1% to 15.6 million.

• Service revenue grew by 32.4% to GHS3.8 billion.
• Earnings before interest, tax, depreciation and amortization (EBITDA) increased by 31.6% to GHS2.1 billion.
• EBITDA margin decreased by 0.4 percentage points (pp) to 55.9%.
• Total capex of GHS1.2 billion (ex-lease capex: GHS852.2 million).
• Paid GHS1.7 billion in direct and indirect taxes (2023: GHS1.1 billion).
• Outlook: MTN Ghana will continue to invest to develop its platforms and improve its network and services, in order to unlock value for stakeholders in line with our 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. MTN Ghana maintains its medium-term guidance of high twenties (in percentage terms) growth in service revenue.

MTN Ghana CEO, Stephen Blewett, commented on the country’s macroeconomic context of operating in a challenging economy in an election year.

Inflation

“The Ghanaian economy faced macroeconomic challenges that persisted into 2024, with inflation remaining relatively high, though on a generally declining trend. The average inflation rate within the first quarter was 24.2%, representing a decline of 26.3 percentage points (pp) from the Q1 2023 average rate of 50.5%. However, inflation ticked up to 25.8%* by the end of the first quarter of 2024; up by 2.6pp compared to 23.2% recorded at the end of December 2023.” he said

“The effects of inflation on consumers and businesses were exacerbated by the increase in the prices of petrol and diesel, which rose to GHS13.12 and GHS13.89 respectively; versus the Q1 2023 prices of GHS12.95 and GHS13.49.” he added

Cedi depreciation

He concludes, “Additionally, the Ghanaian cedi depreciated by 8.44% YTD against the US dollar according to the Bank of Ghana interbank rates. 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 topline growth and cost efficiencies, as well as creating shared value for all stakeholders. These efforts underpinned a strong Q1 2024 result, with service revenue growth of 32.4% YoY and a resilient EBITDA margin.”