MTN optimistic of resolving SMP impasse with gov’t…Profit hits GH¢1.39bn

MTN Ghana says it is optimistic discussions with the National Communications Authority and other stakeholders regarding the Significant Market Power will result in a positive outcome its business and the long-term sustainability of the industry.

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

On 13th 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. 

It said “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”.

Meanwhile, according to its 2020 Audited Financial Results, MTN Ghana registered a profit of GH¢1.39 billion, about 38.4% growth year-on-year.

This was made possible by growth in data service and mobile money.

Service revenue growth remained in the double digits, expanding by 16.4% year-on-year, driven by growth in voice, data, mobile financial services and digital.

The contribution to service revenue from voice continued its declining trend, reducing from 45.0% to 41.8% in the year as other services increased their contribution in line with the company’s strategy to diversify revenue.

Whilst, subscribers increased by 23.4% to 24.4 million, 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 board of the company has therefore recommended a final dividend of GH¢0.05 per share, bringing the total dividend for the 2020 year 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.

Outlook

The company said the outlook for 2021 will be shaped by the extended impact of the covid-19 pandemic.

“As a business, we remain focused on our people, on our customers and on supporting government through the provision of a resilient network to support growth in economic productivity.”

“In 2021, we will continue our journey from a traditional mobile telecommunications operator to an emerging digital operator. We have therefore designated 2021 as ‘Year of the customer: the digital experience’, it further said.

Source: Mypublisher24.com