MTN Ghana Posts Impressive Results As Profit After Tax Up By 43.5%

Board Chairman of Scancom PLC (MTN Ghana), Dr Ishmael Yamson,

Accra, Ghana//-MTN Ghana’s profit after tax rose to GHS2.0 billion in 2021, representing a 43.5% year-on-year (YoY) compared to the figure recorded in 2020.

The Board Chairman of MTN Ghana,  Ishmael Yamson announced today at the company’s fourth Annual General Meeting held in Accra,

Drivers of the growth

He attributed the significant growth in the company’s revenue to strong growth in data, service, mobile money and voice.

Data revenue grew by 56.3% YoY to GHS2.8 billion as a result of increased data traffic (+54.9%) owing to various commercial interventions, improvements to the network, changes in consumer usage behaviour and an increased number of smartphones on the network (+10.6%), according to him.

While the contribution of data to service revenue increased from 29.6% to 36.0% YoY in line with the company’s revenue diversification strategy.

The growth in subscriber numbers, product enhancements and innovations around customer value management supported growth in voice revenue by 4.9% YoY to GHS2.6 billion.

The contribution of voice to service revenue consequently declined from 41.8% to 34.1% YoY in favour of increased contributions from data and Mobile Money (MoMo), the telecoms company’s 2021 financial statement revealed.

The Chief Executive Officer of MTN Ghana, Selorm Adadevoh explained that active MoMo users recovered from the challenges in the first-half 2021 to achieve a growth of 3.8% YoY.

“We expanded our MoMo distribution and footprint across the nation through the growth in active agents (+18.7% YoY). We also expanded merchants (+29.9% YoY) to bring our services much closer to our customers and to further enhance financial inclusion”, he added.

Dividend 

 After reviewing the full year performance of the company in 2021, the Board recommended a final dividend of 8.5 pesewas on ordinary shares was approved by the shareholders at today’s meeting.

This is further to the interim dividend of 3.0 pesewas per share declared by the Board after reviewing the half year performance of the company.

This brings the total dividend for the year 2021 to 11.5 pesewas per share and represents 70.6% of profit after tax and a 43.8% increase in dividend per share payout in 2021 over 2020.

MTN Ghana CEO, Selorm Adadevoh

Capex of GHS1.5 billion

In 2021, Mr Adadevoh told the shareholders that the company invested a total capital expenditure (capex) of GHS1.5 billion in supporting infrastructure modernization, expansion of 4G population coverage to over 90.6% (+18.9pp) and improvements to quality of service.

 Improvements to network capacity and quality were made possible by rolling out 131 2G, 120 3G and 1,446 4G sites and modernising 2,121 existing 4G sites, he said.

“We extended 4G network and data services to an additional 1.7 million people, deepening digital inclusion in Ghana. Investments in the network and IT systems, coupled with the execution of our commercial strategy, enabled the expansion of the subscriber base by 1.0 million YoY to 25.4 million”.

These investments combined with changes in consumer usage patterns resulted in active data user growth of 15.3% YoY with a corresponding growth of 34.3% in megabytes consumed per active subscriber.

African Eye Report