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Business News of Thursday, 30 April 2020

Source: Class FM

MTN delivers GH¢349m profit in Q1 despite coronavirus

MTN Ghana has delivered a strong performance for the first quarter of 2020 despite macro-economic challenges in March particularly, as earnings went up by 62% to GH¢349 million.

“Our strong growth in revenue coupled with our cash management initiatives resulted in strong growth in profit and improved our cash generation from our operation by 12.5%”, it disclosed in its quarter one 2020 financial statement.

According to the leading mobile telecom firm, Mobile Money revenue grew strongly by 30.4%, benefiting from an increase in the number of active subscribers (+2.1%), higher transactional activity of person-to-person and growth in more advanced services such as retail merchant payments and international remittances.

Moreover, mobile Money revenue’s contribution to service revenue increased from 17.9% to 19.4%.

Mobile phone subscribers also increased by 6.2% to GH¢23.9 million, whilst data subscribers increased by 5.4% to GH¢21.2 million.

Also, active data subscribers also up by 6.1% to GH¢8.6 million.

In support of government’s efforts in the fight against COVID-19, MTN Ghana through the MTN Ghana Foundation also donated GHS5 million for the procurement of medical supplies.

These include personal protective equipment (PPE) and other essentials to support frontline medical staff.

“We also increased our focus on four key areas: our people, our customers, our network and our efficiency.

“For our people, the immediate priority is their health and safety. Our work-from-home programme enables our staff to work remotely while ensuring the continuity in our operations”, the statement emphasised.