Scancom (MTNGH) Q1 2025 earnings summary

Executive summary

• Service revenue rose 39.6% YoY to GHS5.3 billion, driven by growth in data, digital, and Mobile Money segments.

• Mobile subscribers increased 5.2% YoY to 29.2 million; active data subscribers up 10.8% to 17.8 million.

• Profit after tax surged 53.7% YoY to GHS1.7 billion; EPS up 53.7% to GHS0.1292.

• EBITDA grew 45.0% YoY to GHS3.1 billion, with margin expanding to 58.1%.

• Strong operational execution despite high inflation and cedi depreciation.

Financial highlights

• Total revenue: GHS5.36 billion (+39.4% YoY); service revenue: GHS5.35 billion (+39.6% YoY).

• Data revenue: GHS2.81 billion (+54.9% YoY); Mobile Money revenue: GHS1.33 billion (+53.1% YoY).

• Voice revenue: GHS951 million (+6.2% YoY); digital revenue: GHS82.1 million (+65.4% YoY).

• Total costs increased 32.2% YoY; operating expenses up 42.9% YoY.

• Capex for Q1: GHS1.17 billion; ex-lease capex: GHS779.5 million.

Outlook and guidance

• Medium-term service revenue growth guidance revised to low-to-mid thirties percentage range.

• Margins expected in the mid-fifties; focus on cost efficiency and customer satisfaction.

• Inflation and currency volatility remain key challenges; gradual easing of inflation anticipated.

• Removal of e-levy expected to boost Mobile Money growth and digital inclusion.