MTN grows profit by 62% to record GH¢350m in 2020 1st quarter

MTN grows profit by 62% to record GH¢350m in 2020 1st quarter

MTN recorded a profit after tax of about 350 million cedis for the first three months in 2020, representing a 62 per cent growth over the 2019 figure of 215 million cedis.

This means between January and March 2020, the telecommunication company recorded about 134 million cedis more in profit after tax deductions.

For the first three months of 2020, MTN’s total revenue which comprises income accruing from both core activities and other services amounted to 1.44 billion cedis.

This represents about 21% growth compared to the 1.19 billion cedis recorded the same period in 2019.

Of the total revenue, the company’s core activities like voice and data services, accrued 1.42 billion cedis or 99%.

Other services which include the sale of sim cards and mobile devices accounted for the remaining 1% of the total revenue.

For the three months, MTN recorded a 6.2% increase in subscribers to 23.9 million. Of this, 20.7 million subscribers fell within the telco’s specified category where it earns revenue from.

Again, although active data subscribers reached 21.2 million, 8.6 million were classified as active as they were in the category of customers using more than 5MB of data in a month.

Meanwhile, registered Mobile Money (MoMo) subscribers increased by 6.9% to 15.5 million with active MoMo subscribers increasing by 2.1% to 9.3 million.

For MTN, although it has witnessed growth in data revenue, the shifts in behaviour to work-from-home and school-from-home schemes do not fully offset the slowdown in voice and Mobile Money revenue.