MTN to invest $160 million in network technology, IT … Records GH¢1billion profit

MTN Ghana is set to invest over $160 million in network technology and IT to further enhance customer experience and drive growth this year.

The company will also extend its technology leadership through LTE Advanced (Long-term Evolution) and 4G+ in a bid to reach more consumers.

Mr Selorm Adadevoh, Chief Executive Officer, MTN who announced this at a stakeholder engagement in Accra yesterday said the company was dedicating 2019, the ‘Year of the Customer’ to appreciate its customers.

He said MTN was introducing onto the Ghanaian market more exciting products adding that,   “We will soon launch MTN TurboNet router, a plug and play internet router, which comes with high powered external antenna and data SIM, which enables it to deliver fast internet in the company’s 4G locations.”

Mr Adadevoh said KaiOs Smart feature phone would also be launched in this quarter, while various MTN apps, focused on self-care, music and messaging, would also be launched to enable customers to enjoy easy access to services.

The company recorded a profit before tax of over GH¢1 billion for 2018 representing a-10 per cent jump over the GH¢980 million posted in 2017.

Revenue in 2018 reached GH¢4.2 billion, up from GH¢3.4 billion showing a 23.5 per cent growth.

The 2018 financials showed the subscribers reached 20.1 million subscribers.

Active data subscribers were 13.5 million, while active mobile money subscribers were 13.6 million.

Market share stood at 59.9 per cent ending 2018.  Mobile money business was up by 34.6 per cent accounting for 24.8 per cent of its GH¢4.2 billion.

MTN declared a dividend of 3 per cent, bringing the total dividend to 5 pesewas, after that interim dividend of 2 pesewas in November.

This would result in total dividend payout amounting to GH¢1313 million was declared for the year ending 31 December 2018 (2017: GH¢470 million, GH¢0.0437 per share). 

According to MTN, the service revenue increased by 23.0 per cent, driven by the strong growth in voice, data and digital revenue.

The company’s data revenue increased by 30.2 per cent year on year (YoY) while digital revenue grew by 34.6 per cent. This was driven by a 92.0 per cent increase in data traffic to 137 850TB.

MTN Mobile Money supported digital revenue growth and increased its contribution to total revenue to 17.7 per cent. Voice revenue increased by 15.1 per cent YoY and contributed 46.0 per cent to total revenue.

By David Adadevoh

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