MTN Ghana sets three-year revenue target

MTN Ghana says it projects to grow its service revenue between 13 and 15 percent in the next three years.

The Chief Executive Officer (CEO), Selorm Adadevoh who disclosed this at the company’s turn of the Fact behind the Figures series of the Ghana Stock Exchange (GSE) to present the company’s 2019 full year financial results, said the growth in revenue was expected to be driven by data, voice, digital, and mobile money and enterprise business.

MTN Ghana, a subsidiary of Scancom Plc, which had been operated in the country for the past two decades, listed on the Accra bourse in 2018, to give Ghanaians opportunity to earn a share in the company.

Mr Adadevoh explained that profit after tax of the MTN Ghana last year rose to GH₵1 billion cedis, which is a 35 per cent over the previous year’s performance.

He said service revenue grew by 22.8 per cent to GH₵5.1 billion driven by voice, data and mobile money business.

The CEO said voice revenue increased by 19.4 per cent to GH₵2.3 billion, while data revenue shot up 32.5 per cent to GH₵1.5 billion and mobile money revenue went up 28 percent to GH₵1 billion.

The earnings per share, he said  increased by 22.4 per cent to 8.2 pesewas and MTN declared a dividend of GH0.6 pesewas per share, adding that the objective of the MTN Ghana was to increase its dividend payment between 60 and 80 percent.

“MTN Ghana last year spent more than GH₵900 million on capital expenditure to improve on the services of the company,” Mr Adadevoh said.

On the fiscal development of the company, Mr Adadevoh said MTN Ghana last year paid corporate tax of GH₵2 billion, which constitute five percent of total tax revenue.

He said MTN Ghana also last year paid Communication Service Tax of GH₵273 million, constituting 66 per cent of the Communication Service Tax.

“MTN is only telecommunication company which last year paid stabilisation levy of GH₵70 million to government,” Mr Adadevoh stressed.

In addition, Mr Selorm said MTN Ghana contributed to more than 500,000 direct and indirect employment.

Highlighting on the operation performance of the company, he said the total subscriber base of the company as at last year stood at 22.6 million and data subscribers stood at 8.1 million and total mobile money subscriber was 9.1 million.

Mr Adadevoh said the company would continue to invest to bring its services to all the parts of the country.

He said the company had renewed its 2G license for another fifteen years, stressing in view of the low smartphone penetration, there would be the need for 2G services especially for people living in rural areas.

Currently, he said, MTN Ghana had 400 rural sites and the intention was to increase it substantially this year.

Going forward, he said the company was going to invest in digital services, saying the intention was to make the company a digital service company.

“Our key priorities for 2020 is to invest massively in voice, data, mobile money, digital, wholesale and enterprise businesses by initiating new products  and services and improving on service offering,” he said.

The Managing Director of the GSE, Mr Ekow Afedzie in his remarks  lauded the company for coming to the bourse to explain its performance to  its shareholders and the general public.

He said the company’s total market capitalisation is GH₵8.6 billion constituting 39 percent of the total market capitalisation of the GSE.

Mr Afedzie so far this year has traded 78 million on the Accra bourse at the value of GH₵58 million.


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