MTN records over GH¢1bn profit in 2018

MTN records over GH¢1bn profit in 2018
Source: Ghana | JoyBusiness | JAD
Date: 01-03-2019 Time: 01:03:42:pm
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Telecoms giants, MTN has recorded a profit before tax of over GH¢1 billion for 2018. 

This represents 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.

Dividend for shareholders

Based on MTN’s sterling financial results, the mobile operator 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).  

This consisted of a special dividend of GH¢1 068 million paid to pre-initial public offering (IPO) shareholders and an interim dividend of GH¢245 million (GH¢0.02 per share) paid to post-IPO shareholders. 

The directors recommend the payment of GH¢369 million (GH¢0.03 per share) as a final dividend to shareholders.

According to MTN, the Service revenue increased by 23.0%, driven by the strong growth in voice, data and digital revenue. Data revenue increased by 30.2% year on year (YoY) while digital revenue grew by 34.6%. This was driven by a 92.0% increase in data traffic to 137 850TB. 

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

The business executed well on its capex plans in the year, supporting the improvement in coverage expansion, customer experience and QoS significantly, leading to subscriber growth. During the period, 600 2G sites, 1 100 3G sites and 250 4G sites were rolled out.

The improved network coupled with aggressive sales and product offers drove the improved subscriber growth. Subscribers increased by 12.7% YoY to 20.1 million (13.6% YoY to 17.8 million). 

The number of active data subscribers in the same period was 6.4 million.

MTN Mobile Money (MoMo) continued its positive momentum, adding 17.8% more active MoMo subscribers from December 2017 to 8.4 million, supported by consistent service delivery across all channels.

MTN’s listing on Ghana Stock Exchange      

MTN Ghana listed on the Ghana Stock Exchange (GSE) on 5 September 2018 with the largest number of Ghanaian shareholding at 127 826. 

At the end of December 2018, MTN Ghana’s market capitalisation was GH¢9.7 billion, making it the third largest primary listed company on the GSE.

Performance in other sectors 

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.


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