Metro Mass Transit returns to profit despite persistent financial challenges
Metro Mass Transit Limited (MMTL) recorded its first profit in two years in 2025, buoyed by stronger passenger demand and increased revenue from its transport services, according to the latest State Ownership Report released by the State Interests and Governance Authority (SIGA).
The state-owned transport company posted a net profit of GH¢4.48 million, reversing a loss of GH¢2.52 million recorded the previous year. Operating profit also improved significantly, rising to GH¢5.07 million from GH¢530,000 in 2024.
The improved performance was driven largely by growth in passenger transport operations. Revenue climbed to GH¢161.85 million in 2025, representing a 16.87 per cent increase over the previous year. Ticket sales remained the company’s largest source of income, while hiring and school bus services also contributed to the growth.
Passenger patronage increased sharply during the year, with MMTL transporting more than 2.5 million passengers compared to 1.93 million in 2024. Daily passenger boardings also rose considerably, reflecting growing demand for the company’s services.
The report indicated that operational efficiency improved despite a reduction in staff numbers. Revenue generated per employee increased, while the company achieved a cost recovery ratio above 100 per cent, meaning operating income was sufficient to cover operating expenses.
As part of efforts to modernise its operations, MMTL introduced an electronic ticketing system and implemented a smart workplace initiative aimed at improving efficiency and reducing paper usage. The company also benefited from a government-funded investment of GH¢39.1 million to support the deployment of electric buses as part of Ghana’s sustainable transport agenda.
Despite the return to profitability, the report highlighted several financial concerns that continue to weigh on the company. Operating cash flow weakened considerably during the year, falling from GH¢13.34 million to GH¢2.37 million, suggesting that only a small portion of revenue was converted into cash.
The company’s balance sheet also remains under pressure. Total liabilities continued to exceed total assets, leaving MMTL with negative equity of GH¢142.63 million at the end of 2025, although this represented a slight improvement from the previous year.
Liquidity challenges also persisted. While short-term liquidity improved marginally, the company’s current assets remained insufficient to fully cover its short-term obligations. Outstanding payables exceeded GH¢123 million, while government-related domestic loans stood at more than GH¢124 million.
The report further noted that Metro Mass Transit continued to fulfil its social mandate by charging fares below prevailing market rates. SIGA estimated that this policy cost the company GH¢378.38 million in 2025 through quasi-fiscal obligations designed to keep public transportation affordable.
Although the company has returned to profitability and improved its operational performance, the report concluded that its long-term financial sustainability will depend on addressing weak cash generation, reducing liabilities and strengthening its overall financial position.
Source: myjoyonline.com
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