Scancom (MTNGH) Q1 2025 earnings summary

Executive summary

• Service revenue grew 39.6% YoY to GHS5.3 billion, driven by strong performance in data, digital, voice, and Mobile Money segments.

• Mobile subscribers rose 5.2% YoY to 29.2 million; active data subscribers up 10.8% to 17.8 million; active Mobile Money users up 11.5% to 17.4 million.

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

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

• Strong operational execution and strategic investments supported growth 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); voice revenue: GHS951 million (+6.2% YoY); digital revenue: GHS82.1 million (+65.4% YoY); Mobile Money revenue: GHS1.33 billion (+53.1% YoY).

• Total costs rose 32.2% YoY to GHS2.25 billion; operating expenses up 42.9% YoY.

• Depreciation and amortization: GHS666 million (+29.6% YoY); net finance costs down 45.2% YoY; finance income up 18.6% YoY.

• Capex: GHS1.17 billion (-3.6% YoY); ex-lease capex: GHS779.5 million.

Outlook and guidance

• Medium-term service revenue growth guidance revised to low-to-mid thirties percentage; EBITDA margin expected in mid-fifties.

• Focus on sustaining revenue growth, cost efficiency, and customer satisfaction amid inflation and currency pressures.

• Continued investment in network, digital, and fintech platforms to capture market opportunities.

• 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.