Home Business MTN records GH¢1.3bn profit; optimistic of resolving SMP impasse with government

MTN records GH¢1.3bn profit; optimistic of resolving SMP impasse with government

MTN Ghana CEO, Selorm Adadevoh

Mobile telecommunication leader, MTN Ghana recorded a profit of GH¢1.3 billion last year, about 38.4% year-on-year growth.

According to its 2020 Financial Statement, total revenue was however GH¢6 billion, 16.4% increase over that of 2019.

To this end, the board of the company is declaring an interim dividend of GH¢0.03 per share after reviewing the company’s first quarter results.

After reviewing the full year performance of the company, the board also recommended a final dividend of GH¢0.05 per share, bringing the total dividend for the year 2020 to GH¢0.08 per share. This represents 70.5% of profit after tax and a 33.3% increase in dividend per share over those paid for 2019.

MTN Ghana subscribers also increased by 23.4% to 24.4 million whilst active data subscribers increased by 32.4% to 10.8 million.

Active Mobile Money (MoMo) users also increased by 16.3% to 10.6 million. The company said this was the result of various promotions in the year, increased person-to-person transactional activity and the offer of more advanced services such as retail merchant payments and international remittances.

Digital revenue however declined by 6.2% year-on-year. During the period, MTN Ghana said it made some enhancements in its video and gaming offerings resulting in a 328% surge in the number of active subscribers* and increased adoption of  its MyMTN and Ayoba messaging apps.

Regulatory updates on SMP, localization and licenses

On the regulatory front, MTN Ghana said it continues to maintain high ethical standards and commitment to regulatory obligations.

“We also remain focused on providing the enabling technology to support Ghana’s digital economy. In this context, MTN Ghana undertakes constructive engagements with regulatory stakeholders at all times on issues related to policy and regulatory initiatives.”

On the issue of the significant market power (SMP) declaration, and per the update in its third quarter results release, on 13 October 2020, MTN Ghana withdrew its application filed at the Supreme Court following a series of engagements with the regulator and other key stakeholders to resolve the issue in an amicable manner.

From October 2020, however, MTN Ghana, implemented the National Communication Authority’s directive to apply a 30% asymmetrical interconnect rate for two years.

Importantly, engagements and discussions with relevant stakeholders continued, after they were briefly suspended leading up to the national elections in December 2020, stressing “and we are optimistic that these discussions will result in a positive outcome for MTN Ghana and the long-term sustainability of the industry.”

“We remain grateful to the NCA, the Ministry of Communications and key stakeholders for their openness and commitment to engage with the view to resolve the issues amicably.”

Covid-19 impact

The company said economic and business performance in 2020 was influenced by the spread of the COVID-19 pandemic with devastating impact across the globe.

“The impact of the pandemic has been felt by everyone and many of us have loved ones who have been affected by COVID-19. MTN Ghana and our employees have also been impacted by COVID-19 despite our best efforts in ensuring the safety of our people.”

It expressed gratitude to all frontline workers, including its own front-liners who bravely served its cherished customers.

As such, the MTN Ghana Foundation donated GH¢5 million worth of personal protective equipment (PPE) and other essentials to the government’s COVID-19 Trust Fund for onward distribution to frontline medical workers.



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