MTN Ghana records 42.7% growth in profit in 2022 to ¢2.85bn; paid ¢3.7bn in taxes

Selorm Adadevoh is CEO of MTN Ghana

Leading mobile service provider, MTN Ghana, recorded a 42.7% year-on-year growth in profit in 2022 to ¢2.85 billion.

According to its 2022 Audited Financial Report, service revenue grew by 28.3% to ¢9.9 billion.

This was supported by good subscriber management amidst the national SIM re-registration programme, increased investment in the network and the diligent execution of commercial initiatives in voice, data and Mobile Money services.

It added 3.3 million subscribers to its subscriber base and invested ¢2.1 billion in total capital expenditure to support the modernisation of infrastructure, improve IT systems and expand network capacity and coverage across the nation.

Also, earnings before interest, tax, depreciation and amortization (EBITDA) increased by 30.9% to ¢5.6 billion.

The company thus provided a final dividend per share of ¢0.124 to shareholders. This is compared with 0.085 per share in 2021.

In 2022, the company paid ¢3.7 billion in direct and indirect taxes. It also allocated ¢28.3 million on socio-economic initiatives.

Voice revenue

Voice revenue accelerated in the fourth quarter due to portfolio adjustments made in the prior quarter. The company worked on customer acquisition and customer value management which enabled it reconnected to its customers through tailored offers, and also helped to drive a 24.5% year-on-year increase in voice revenue to ¢3.3 billion.

The contribution of voice to total service revenue however declined from 34.1% to 33.1%.

Data revenue

Data revenue increased by 39.8% year-on-year to ¢3.9 billion.

This was supported by various commercial interventions which helped drive growth in active data users (+8.3% year-on-year) and consequently increased traffic (+46.6% year-on-year) from its home and mobile subscribers.

Data revenue contribution to total service revenue increased from 36.0% to 39.2% year-on-year.

MoMo revenue

Mobile Money (MoMo) revenue suffered post the implementation of the electronic transaction levy in May 2022.

It however expanded the MoMo ecosystem by growing active MoMo merchants by 4.8% year-on-year and MoMo agents by 17.2%  year-on-year.

Active MoMo users increased by 15.0% year-on-year.

Digital revenue

 Digital revenue declined by 18.8% year-on-year to ¢144 million due to a decrease in active digital subscribers (-15.9% Year-on-year), as a result of initiatives to enhance customer experience and rationalise its digital product portfolio.

The company improved the music and gaming offerings with the launch of the Mdundo music service and refreshed ayoba with a new gaming section that includes Subway Surfer which is expected to boost customer usage and experience.

The contribution of digital to total service revenue decreased from 2.3% to 1.5% year-on-year.

Overall, MTN Ghana described 2022 as a challenging year for Ghana’s economy, compounded by high levels of inflation and the sharp depreciation of the Ghanaian cedi against key currencies.

It will however continue to execute on its Ambition 2025 strategy and maintain its investment commitment to drive continued growth.