MTN Ghana stock surges to record high following strong first quarter performance

MTN Ghana, known on the Ghana Stock Exchange as Scancom Plc, has seen a remarkable increase in its stock value, reaching an all-time high on Tuesday, April 30.

This surge came on the heels of the release of the company's 2024 first-quarter earnings report, which showcased impressive financial and operational achievements.

The share price of MTN Ghana rose by 11 pesewas, marking a substantial 6.7% increase, to reach GH₵1.75. This significant jump surpassed the previous record high of GH₵1.65 recorded in March, indicating strong investor confidence in the company's performance and prospects.

Total revenue for the quarter to end-March was 32.5% higher at 3.85 billion cedis, while profit after tax rose to 1.11 billion cedis from 745.4 million cedis a year ago. Service revenue grew by 32.4% to 3.83 billion cedis.

The first-quarter report highlighted substantial growth in service revenue, with a notable 32.4% increase to GH₵3.8 billion from GH₵2.9 billion in 2023. This growth was primarily driven by robust performances in data services, Mobile Money (MoMo), and voice communications. The company invested GH₵327.1 million in maintaining network quality, expanding coverage, and enhancing IT systems, further contributing to its positive performance.

Data revenue witnessed an impressive 60.0% year-on-year growth, reaching GH₵1.8 billion. This growth was supported by pricing initiatives implemented in the previous quarter and increased usage per active user. As a result, data revenue contributed significantly to total service revenue, accounting for 47.4% of the total.

Mobile Money revenue also experienced substantial growth, increasing by 35.5% year-on-year to GH₵870.6 million. This growth was driven by an expansion in the active user base and increased usage of MoMo services such as cashout, peer-to-peer transfers, and advanced services.

Despite challenges such as high inflation impacting costs, MTN Ghana managed to increase its EBITDA by 31.6% year-on-year, reaching GH₵2.1 billion. The company's commitment to expense efficiency programs helped mitigate some of the cost pressures.

Source: Kweku Zurek (Graphic Business)