MTN Ghana‘s Board Chairman, Ishmael Yamson, revealed at the company’s annual general meeting (AGM) in Accra that in the previous year, MTN paid GH¢5.9 billion in direct and indirect taxes, along with an additional GH¢0.4 billion in fees, levies, and other payments to government agencies.
These payments represented 47.1 percent of MTN’s total revenue contributed to the government for the 2023 financial year.
Mr. Yamson reaffirmed MTN Ghana’s commitment to serving as a development partner to the government by contributing to the fiscal and socio-economic advancement of the country.
In his update on the company’s performance for the year 2023, Mr. Yamson highlighted MTN’s successful navigation of challenges in the business environment to achieve notable success during the period. He attributed this success to the company’s ongoing commitment to the disciplined execution of its strategic objectives.
“In the past year, the Ghanaian economy faced several challenges that impacted the business environment. These included elevated inflation and a tight monetary policy which led to an increase in the domestic cost of capital,” he said.
In response to economic challenges, the government launched a three-year fiscal adjustment and reform program, supported by a US$3 billion Extended Credit Facility from the International Monetary Fund (IMF).
As part of the IMF program requirements, the government initiated a Domestic Debt Exchange Program (DDEP) aimed at restoring the country’s debt sustainability. The initial phase of the DDEP, which primarily involved domestic creditors, resulted in reduced interest income on investments and prolonged the period required for bondholders, including financial institutions, to recover their invested capital in Treasury bonds.
As a consequence, the cost of credit increased, access to new capital became limited, and the domestic investment environment was hindered. However, the second phase involving external creditors has yet to be finalized and implemented.
“Despite these challenges, I am happy to report that our company has continued to demonstrate discipline in executing on its strategic goals for 2023. This success is a testament to the hard work, dedication and resilience of our employees, as well as the support of our valued partners,” the board chair added.
Chief Executive Officer of MTN Ghana, Selorm Adadevoh, offered additional details on the company’s performance in 2023, noting that service revenue saw a year-on-year (YoY) increase of 34.6 percent. This growth was fueled by significant contributions from voice, data, and mobile money revenue streams.
“This growth can be attributed to well-executed commercial strategies and our focused investment in maintaining high network quality, expanding coverage and delivering a good experience to our customers, as well as achieving progress in our pricing initiatives across the business,” he reported.
According him, the national SIM re-registration exercise posed a challenge in the company’s subscriber base, resulting in a 6.3 percent YoY decrease.
“Despite the challenges presented and the potential implications on the business, our unwavering commitment to providing high-quality services to attract new customers and retain existing ones helped partially mitigate the full impact of the national SIM re-registration exercise on the business,” he stated.
Financial performance
MTN Ghana’s financial report for 2023 shows a robust performance with a strong total revenue growth of 34.6 percent compared to the previous year.
According to its annual report, the growth was achieved through targeted business strategies that led to an increase in voice, data and mobile money revenues.
As part of the company’s commitment to disciplined execution, the management team executed the expense efficiency programme proactively to control costs, maintain profitability and ensure business growth.
As a result, earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by an outstanding 40.2 percent year-on-vear (YoY), and EBITDA margin also increased by 23 percentage points from 56.1percent in 2022 to 58.4percent, portions of the report read.
Profit after tax also grew by 39.4 percent YoY and earnings per share increased by 29.5 percent YoY.
“These impressive results demonstrate the company’s commitment to driving sustainable business growth in challenging times,” the report further noted.