MTN delivers double-digit growth in Ghana
MTN Ghana delivered strong double-digit growth in nearly all business indicators for the year ended 31 December 2019.
This buoyant growth largely came from voice revenue (up 19.4%), data (up 32.5%) and Mobile Money (MoMo) (up 28%).
MTN Ghana’s success during the year is further illustrated by subscriber growth, which increased by 12.3% to 22.6 million, and the company also raised its total dividend to six pesewas per share.
“Double-digit growth in voice revenue was driven by an increase in the number of active subscribers (+11.2%), the benefits of various customer value management initiatives and pro-consumer activity, as well as continued improvements to our network,” MTN says in a SENS note to shareholders.
“As new lines of revenue continued to grow much faster than the traditional business, voice revenue’s contribution to service revenue decreased from 46.3% to 45%.
“Solid data revenue growth was attributable to growth in the active data users’ number (+26.6%), growth in the number of smartphones (+18.5%) on the network and an increase in data usage (up 85.9% to 256 301 Terabyte). Data revenue’s contribution to service revenue expanded from 26.3% to 28.4%.”
MTN says MoMo revenue continued to grow strongly, in a year in which the operator marked the 10th anniversary of MoMo in Ghana.
“MoMo growth was attributable to an increase in the number of active subscribers (+8.9%), commissions on cash-in-cash-out transactions, increased transactional activity of person-to-person transactions, as well as good growth in more advanced services – such as retail merchant payments. MoMo revenue’s contribution to service revenue expanded from 17.9% to 18.6%,” says MTN.
It declared an interim dividend of two pesewas per share after reviewing the mid-year performance.
“After reviewing the full-year performance of the company, the board of MTN Ghana shall be recommending a final dividend of four pesewas per share, bringing the total dividend for the 2019 year to six pesewas per share. This represents 73.1% of profit after tax and a 20% increase in dividend per share.”