Ghana Digital Centres Limited (GDCL) recorded a sharp deterioration in its financial performance in 2025, as its net loss nearly tripled to GH¢6.06 million amid falling revenue and weakening cash generation.

According to the 2025 State Ownership Report by the State Interests and Governance Authority (SIGA), the company’s net loss increased from GH¢2.20 million in 2024 to GH¢6.06 million in 2025.

The GH¢3.86 million increase represents a deterioration of about 175 per cent within the year.

GDCL also recorded an operating loss of GH¢6.06 million in 2025, compared with GH¢2.20 million in the previous year. Its earnings before interest, taxes, depreciation and amortisation also worsened from a loss of GH¢1.58 million to GH¢5.38 million.

The report said the company’s profitability “weakened significantly” during the year, with its operating margin declining from negative 6.5 per cent in 2024 to negative 59.4 per cent in 2025.

“The decline was primarily driven by a 24.41 per cent reduction in total revenue, which fell from GH¢10.57 million in FY2024 to GH¢7.99 million in FY2025, reflecting weaker operating performance during the period,” SIGA said.

Although the report described the GH¢7.99 million figure as total revenue in its assessment, the abridged financial statement classified it as operating revenue. It placed the company’s overall revenue, including non-core income, at GH¢10.20 million in 2025, down sharply from GH¢33.68 million in 2024.

Non-core revenue fell from GH¢23.10 million to GH¢2.21 million over the period, representing a decline of more than 90 per cent.

Management introduced cost-cutting measures during the year, reducing administrative expenses by 55 per cent, from GH¢35.87 million in 2024 to GH¢16.25 million in 2025.

However, SIGA said the savings were not enough to compensate for the decline in operating and non-core revenue.

“Management implemented substantial cost rationalisation measures, resulting in a 55 per cent reduction in administrative expenses from GH¢35.87 million in FY2024 to GH¢16.25 million in FY2025. However, these cost savings were insufficient to offset the sharp decline in revenue,” the report stated.

The latest loss marked the fifth consecutive year in which GDCL failed to record a profit. Its losses stood at GH¢390,000 in 2021, GH¢4.01 million in 2022, GH¢4.29 million in 2023, GH¢2.20 million in 2024 and GH¢6.06 million in 2025.

Cumulatively, the company recorded losses of about GH¢16.95 million over the five-year period.

Its total assets also declined from GH¢114.56 million in 2024 to GH¢109.05 million in 2025, while total equity fell from GH¢113.26 million to GH¢107.20 million.

SIGA said recurring operating losses had eroded the company’s retained earnings and continued to place pressure on shareholders’ equity.

“This erosion of earnings underscores the continued pressure on shareholders’ equity and highlights the need to restore sustainable profitability to preserve the company’s long-term financial resilience,” the report said.

The company’s cash position also weakened, with cash and cash equivalents falling by 37 per cent, from GH¢270,000 in 2024 to GH¢170,000 in 2025.

At the same time, trade and other receivables increased by four per cent, from GH¢5.56 million to GH¢5.79 million.

SIGA said the rise in receivables, coupled with lower cash balances and weaker operating cash flows, pointed to a weakening cash-conversion cycle and the need for improved working-capital management.

Despite the losses, GDCL maintained a relatively strong short-term liquidity position. Its current ratio declined from 4.8 times in 2024 to 3.5 times in 2025 but remained above the conventional benchmark of 1.0.

The company also maintained low debt levels, with total debt and liabilities rising from GH¢1.30 million to GH¢1.85 million. Its assets continued to be financed mainly through equity rather than external borrowing.

Ghana Digital Centres Limited is wholly owned by the state and operates the Accra Digital Centre. It is mandated to support digital innovation and entrepreneurship by providing infrastructure and services to technology start-ups, small and medium-sized enterprises and business process outsourcing companies.