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MTN achieves 70 percent localization target

by The Ghana HIT

MTN Ghana did not manage to achieve its goal of increasing its local penetration by 30 percent. Statistics indicate that the domestic component of MTN penetration was 23.7 percent at the end of 2022. The company’s total capital expenditure in 2022 stood at GHC 2.1 billion. MTN allocated Ghc 3.7 billion and indirect taxes. Additionally, MTN gave out 28.3 million to go to socio-economic initiatives.

MTN is a dedicated company with various network services and segments aiming to improve productivity and efficiency. The company offers unique communication solutions that are favorable to many Ghanaian citizens. It is among the leading telecommunication companies in Africa, focused on offering the best telecommunication services to many countries across the continent.

Raph Mupita, MTN’S Group Chief Executive Officer (CEO), affirmed that the company would involve many Ghanaians to meet the desired target of telecommunication success. “We have committed as the MTN Group to localize further and have more Ghanaians owning the shares of MTN Ghana, and we want to get to 30 percent, which is the target we are committed to. We have made progress; we are now at precisely 23.7 percent, so we have another 6.3 percent of shares to localize,” he said.

“We think more and more Ghanaian individuals and institutions should own part of the assets and drive deeper liquidity in the local market to increase the stock price. Liquidity is a function, and we are alive to the fact of what the MTN shares do on the Ghanaian stock exchange,” the MTN Group CEO added.
The introduction of the E-levy in November 2021 negatively affected the MTN -market on the Ghana Stock Exchange in terms of volume and value. It had endured tough times with another market leader when its share price started going down. The Initial market share was at GH c 1.33, but it reduced to GH c 1.11; the trend went on for approximately eighteen months since 2021.
In 2022, MTN’s services revenue grew to GH 9.9 billion, which is 28.3 percent. Besides, all income minus tax, interest, depreciation, and amortization (EBITDA) grew by 30.9 percent to GH c 5.6 billion in 2022. The EBITDA margin grew to 56.1 percent, which equates to 1.1 percent. MTN’s mobile subscribers increased to 28.6 million, which is approximately 12.8 percent, and active data subscribers increased to 13.5 million. Active Mobile Money users also increased significantly to 12.7 million.
The CEO-MTN Ghana, Selorm Adadevoh, said: “As we aim for operational excellence in 2023 as a core pillar for sustaining bottom-line growth for the business in the medium-term, we acknowledge the macroeconomic headwinds that may impact the business environment and our operations. After careful consideration of these factors and after evaluating our commercial strategy, we are reviewing MTN Ghana’s guidance of service revenue growth from mid- to high-teens to low-twenties in percentage terms.”
The total dividend per share in 2022 increased to Ghc 0.164; MTN proposed a final dividend per GH c 0.124, a 42.6 percent increase compared to the previous year’s GH c 0.085 per share. MTN company has a policy of allocating 70.6 percent of the total profit after tax to dividends, and this policy has been adhered to.
MTN affirms that access to communication empowers the national economic status. They always work towards improving the mobile experience for everyone who can access their services. The company’s services are available at affordable charges to ensure that everyone has access. All the segments offered by MTN suit all people’s lifestyles and general economic status and reinforce all users’ access to all the percent services.

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