MTN surpasses local ownership target

MTN has seen the local ownership of Scancom PLC, its primary operating entity, reach 27.9 percent by end of second quarter-2024, as captured in its first half results for 2024 and confirmed by the national telecom regulator.

In what is seen as a significant development for the telecommunications sector, the company has successfully met the 25 percent local ownership requirement for its 4G licence – marking a pivotal moment for its commitment to increasing local participation in its operations.

This not only satisfies regulatory requirements but also demonstrates MTN’s dedication to integrating more deeply into the local economy.

Stephen Blewett, CEO-MTN Ghana, expressed his satisfaction with the company’s performance, stating: “MTN Ghana delivered strong results in the first half of 2024, despite the difficult macroeconomic conditions. This reflects the business’s resilience and our ability to provide essential connectivity solutions for our customers”.

The telecom giant’s financial results for first half-2024 paint a picture of robust growth across various metrics. Mobile subscribers saw a 3.9 percent increase, reaching 28.4 million users.

More impressively, active data subscribers surged by 15.9 percent to 16.4 million while active Mobile Money (MoMo) users grew by 16.2 percent to 16.5 million, underscoring the company’s expanding digital footprint in the country.

Service revenue experienced a substantial boost, growing by 31.2 percent to reach GH¢8.1billion. The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) also saw a significant uptick of 31.3 percent, amounting to GH¢4.6 billion, while maintaining a steady EBITDA margin of 56.1 percent.

In line with its commitment to national development, MTN’s contribution to the country’s tax revenue saw a notable increase. The company reported that direct and indirect taxes paid rose by 44.4 percent to GH¢3.9billion, up from GH¢2.7billion in the previous year. This substantial contribution underscores the vital role MTN plays in the local economic space.

Investors in MTN have also reaped benefits from the company’s strong performance. The interim dividend was increased by 30 percent to GH¢0.065 per share, up from GH¢0.05 in 2023. This increase in shareholder returns reflects the company’s solid financial position and its commitment to creating value for investors.

The company’s stock market performance has been equally impressive. Starting the year at GH¢1.40 per share, MTN’s stock price has gained 67.1 percent, making it the second-best performer on the Ghana Stock Exchange (GSE) in terms of year-to-date performance.

The stock’s liquidity has also been noteworthy, with MTN Ghana emerging as the most traded stock on the GSE over the past three months, trading a total volume of 325 million shares valued at GH¢513million.

Looking ahead, MTN remains optimistic about its future prospects. The company plans to continue investing in its network infrastructure and digital platforms to enhance its services and unlock further value for stakeholders. This aligns with MTN’s Ambition 2025 strategy, which focuses on driving digital and financial inclusion across its markets.

However, the company remains cautious about potential challenges on the horizon. With upcoming elections and ongoing macroeconomic uncertainties, MTN is exploring efficiency measures and working to strengthen its balance sheet. Despite these challenges, the company maintains its medium-term guidance of high-twenties percentage growth in service revenue.