Scancom (MTNGH) H1 2024 earnings summary

Executive summary

• Achieved strong H1 2024 financial and operational performance, with robust growth in subscribers, revenue, EBITDA, and profit despite challenging macroeconomic conditions including high inflation and currency volatility.

• Service revenue rose 31.2% year-over-year to GHS8.1 billion, driven by data, Mobile Money, and digital services.

• Subscriber base expanded, with mobile subscribers up 3.9% to 28.4 million, active data subscribers up 15.9%, and active MoMo users up 16.2%.

• Interim dividend increased by 30% to GHS0.065 per share.

• Maintained focus on strategic investments, cost efficiencies, and stakeholder value creation.

Financial highlights

• EBITDA grew 31.3% year-over-year to GHS4.6 billion, with EBITDA margin at 56.1%.

• Profit after tax increased 36.3% to GHS2.3 billion; EPS up 36.4% to GHS0.176.

• Ex-lease capex intensity at 20.7%, with ex-lease capex up 68.3% to GHS1.7 billion.

• Free cash flow rose 15.9% year-over-year.

• Net cash from operating activities was GHS1.36 billion, with cash and cash equivalents at GHS1.62 billion.

Outlook and guidance

• Medium-term guidance targets high-twenties percentage service revenue growth and maintaining EBITDA margins.

• Core capex intensity expected to improve; dividend payout ratio targeted at 60–80%.

• Continued investment in platforms, network, and digital services to unlock stakeholder value.

• Macroeconomic risks remain due to inflation, currency volatility, and election-related uncertainties.

• Focus on expanding MoMo ecosystem, digital offerings, and rural data penetration.