Selorm Adadevoh
SELORM ADADEVOH, Chief Executive Officer of MTN Ghana, says the company will continue to stick to its investment in digital and financial services to drive growth in the telecommunications space.
He said the company will also drive down operational cost while efficiently investing in capital expenditure to optimize network performance.
“We are upbeat about our compelling investment case as we continue to maintain a strong position in our market with strong revenue growth and leadership in core service delivery,” he said.
Currently, MTN Ghana maintains market leadership with 55.2 per cent share in the competitive telecommunication industry and seeks to invest about US$130 million this year to expand infrastructure.
In 2019, the business reported a profit after tax of GH¢1.01 billion, representing a 33.6 per cent increase over the prior year, driven by strong performance in service revenue from Voice, Data and Mobile Money.
There was a double-digit growth in voice revenue, up 19.4 per cent, which was driven by an increase in the number of active subscribers, the benefits of various customer value management (CVM) initiatives and pro-consumer activity, as well as continued improvements to the network.
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 percent to 45.0 percent.
Data revenue’s contribution to service revenue expanded from 26.3 per cent to 28.4 per cent on the back of the introduction of high-speed internet to homes and to small and medium-sized enterprises (SMEs) by MTN turbonet, which sold over 50,000 units.
Mobile Money revenue continued to grow strongly, up 28.0 per cent year-on year, attributable to an increase in the number of active subscribers, increased transactional activity of person-to-person (P2P) transactions as well as good growth in more advanced services, such as retail merchant payments and international remittances.
Mr Adadevoh said to maintain relevance and to keep up with the dynamism of the telecommunications industry, the company would continue to innovate, create and build meaningful relationships that would improve customer experience and brighten lives.
Despite the gains, the CEO said MTN continued to experience issues impacting on quality of service to customers, including the lingering fibre cut menace and instability of the national power grid to power cell sites.
Board Chairman, Ishmael Yamson, said the overall performance generated a return on equity of 36 per cent to shareholders.
The board recommended a final dividend of four pesewas per share, bringing the total dividend for the 2019 year to six pesewas per share, which was approved by the shareholders.