Despite facing a challenging economic landscape in Ghana characterized by high inflation rates and currency depreciation, Scancom PLC, operating as MTN Ghana, has announced a prosperous year in 2023.
The telecommunications giant disclosed a profit of GH¢3.98 billion and declared a dividend of GH¢0.175 per share in its audited 2023 Financial Report. Although the company’s share price experienced a marginal decline of 0.01 pesewas yesterday, closing trading at GH¢1.39 on the Ghana Stock Exchange, MTN Ghana remains resilient in the face of adversity.
Throughout the year, MTN Ghana remained steadfast in its commitment to delivering value to its stakeholders despite prevailing challenges.
The company’s service revenue experienced significant growth, escalating by 34.6% year-on-year, fueled by robust performances in voice, data, and Mobile Money sectors. This remarkable growth translated into a 39.4% year-on-year increase in profit after tax, surging to GH¢4.0 billion. Furthermore, MTN Ghana maintained a robust balance sheet, with GHS 225 million in outstanding principal debt, while contributing GH¢5.9 billion in direct and indirect taxes.
In 2023, MTN Ghana prioritized investments in its network and infrastructure to ensure enhanced service delivery. With a commitment to expanding its network coverage and improving service quality, the company allocated GH¢3.3 billion towards core capital expenditure. This strategic investment led to the deployment of 350 new 2G, 353 new 3G, and 350 new 4G sites, achieving an impressive 99.3% 4G population coverage.
Beyond its financial performance, MTN Ghana said it remained committed to its social responsibility efforts. The MTN Ghana Foundation invested GHS 30.3 million in initiatives supporting healthcare, education, and economic growth. The company is also dedicated to environmental sustainability, aiming to achieve net-zero carbon emissions by 2040, and fostering diversity and inclusion within its workforce, with a goal of reaching 50% female representation by 2030.
As MTN Ghana prepares for the future, there will be a change in leadership. Selorm Adadevoh, the current CEO, will be transitioning to the role of MTN Group Chief Commercial Officer. Taking the reins as the new MTN Ghana CEO, effective April 1, 2024, will be Stephen Blewett, an experienced leader with a long history within the MTN Group.
Looking ahead, MTN Ghana remains committed to its Ambition 2025 strategy. Despite the anticipated economic challenges, the company expects continued service revenue growth in the high twenties (percentage terms).
Priorities for the future include further improving its digital platforms, expanding access to high-speed internet, and giving back to the communities it serves through various sustainability projects. With a focus on growth, investment, and social responsibility, MTN Ghana is well-positioned for continued success in the years to come.
4.8 Million Subscribers Blocked
Meanwhile, in compliance with directives from the National Communications Authority (NCA), MTN Ghana has taken the proactive step of blocking 4.8 million subscribers who failed to re-register their SIM cards with the Ghana card. This action comes as part of a nationwide effort to enhance security measures and ensure regulatory compliance within the telecommunications sector.
The telecom giant revealed that its subscriber base witnessed a notable decrease, plummeting by 6.3% to 26.8 million by the close of 2023. The significant reduction in subscriber numbers underscores the firm stance taken by MTN Ghana in enforcing the SIM re-registration mandate.
MTN Ghana’s decision to block 5.4 million SIM cards that were not registered with the Ghana card as of May 31, 2023, reflects a stringent adherence to regulatory requirements aimed at safeguarding the integrity of telecommunications services in the country. Despite this substantial action, it is noteworthy that 600,000 SIM cards from the blocked cohort were successfully re-registered.
The initiative to re-register SIM cards using the Ghana National ID card commenced in October 2021, spearheaded by the NCA in collaboration with telecom operators across the nation. The comprehensive exercise aimed to ensure accurate subscriber data and enhance security measures within the telecommunications industry. After nearly two years of diligent efforts, the re-registration process was successfully concluded at the end of May 2023.
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