Scancom (MTNGH) Q3 2024 earnings summary

Executive summary

• Achieved 32% year-over-year growth in service revenue for the nine months ended 30 September 2024, reaching GHS12.7 billion.

• Subscriber base expanded by 10.8% YoY to 28.6 million, with active data and Mobile Money users both rising over 17%.

• Maintained focus on Ambition 2025 strategy, investing in network, digital, and fintech platforms despite macroeconomic headwinds.

• Paid GHS6.1 billion in direct and indirect taxes, equivalent to 51% of total revenue for Q3.

Financial highlights

• EBITDA grew 32.2% YoY to GHS7.2 billion, with margin improving to 56.2%.

• Profit after tax increased 35.5% YoY to GHS3.8 billion.

• Total capital expenditure reached GHS3.7 billion, up 29.2% YoY.

• Diluted/basic EPS rose to GHS0.284 from GHS0.210 YoY.

• Net cash from operating activities was GHS2.95 billion, with significant outflows for capex and dividends.

Outlook and guidance

• Medium-term guidance maintained for service revenue growth in the high twenties percentage range.

• Continued investment in network, digital platforms, and MoMo ecosystem, with focus on cost efficiencies amid inflation and currency risks.

• Plans to expand rural data access, promote smartphone adoption, and enhance partnerships for financial inclusion.