MTN Ghana announces interim dividend amid strong half-year performance for 2024

MTN Ghana has declared an interim dividend following a robust financial performance in the first half of 2024. 

The telecommunications giant reported significant growth across various metrics, reinforcing its position as a market leader in Ghana despite a challenging economic environment.

MTN Ghana's interim dividend for the period ending 30 June 2024 has been set at GHS0.065 per share, reflecting a 30% increase from the previous year’s interim dividend of GHS0.05 per share.

Salient features (YoY)

Subscribers
• Mobile subscribers*
 increased by 3.9% to 28.4 million
• Active data subscribers# increased by 15.9% to 16.4 million
• Active Mobile Money (MoMo) users increased by 16.2% to 16.5 million.

 Service revenue grew by 31.2% to GHS8.1 billion.

 Earnings before interest, tax, depreciation and amortization (EBITDA) increased by 31.3% to GHS4.6 billion.

 EBITDA margin was maintained at 56.1%

 Total capital expenditure (capex) of GHS2.8 billion^ (ex-lease capex: GHS1.7 billion)

 Direct and indirect taxes paid increased by 44.4% to GHS3.9 billion (2023: GHS2.7 billion)

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 Interim dividend increased by 30.0% to GHS0.065 per share (2023: GHS0.05)

 Outlook: MTN Ghana will continue to invest to develop its platforms and improve its network and services to unlock value for stakeholders in line with our Ambition 2025 strategy. MTN Ghana continue to explore efficiency measures, preserve liquidity and strengthen the balance sheet against a backdrop of election-related and macroeconomic uncertainties. MTN Ghana maintains its medium-term guidance of high twenties (in percentage terms) growth in service revenue.

The dividend declaration comes on the back of impressive financial results. MTN Ghana saw its mobile subscriber base rise by 3.9% to 28.4 million, with active data subscribers increasing by 15.9% to 16.4 million. 

Active Mobile Money (MoMo) users also grew significantly by 16.2% to 16.5 million. Service revenue experienced a notable increase of 31.2% year-on-year, reaching GHS8.1 billion. Meanwhile, earnings before interest, tax, depreciation, and amortization (EBITDA) climbed by 31.3% to GHS4.6 billion, maintaining a healthy EBITDA margin of 56.1%.

MTN Ghana CEO Stephen Blewett highlighted the company's ability to provide essential connectivity solutions and promote financial inclusion despite macroeconomic headwinds. 

He attributed the strong performance to MTN Ghana’s strategic focus on driving revenue growth, exploring cost efficiencies, and creating value for stakeholders.

MTN Ghana's service revenue growth was driven by several factors, including a substantial 55.0% increase in data revenue, supported by a rise in active data subscribers and increased data consumption. Mobile Money revenue saw a significant boost of 44.8%, thanks to the expansion of the active user base and the enhancement of digital financial services. Digital revenue also grew by 59.4%, fueled by increased usage of video, gaming, and ring-back tones.

The company continues to invest in its network infrastructure, with total capital expenditure amounting to GHS2.8 billion in the first half of the year. Additionally, MTN Ghana paid GHS3.9 billion in direct and indirect taxes, reflecting a 44.4% increase from the previous year, underscoring its role as a significant contributor to Ghana's fiscal and socioeconomic development.

Looking ahead, MTN Ghana remains committed to its Ambition 2025 strategy, which focuses on enhancing network infrastructure, expanding digital and financial services, and promoting national roaming to achieve universal connectivity. Despite anticipated economic challenges, including inflation, currency volatility, and election-related uncertainties, the company is dedicated to maintaining high-twenties growth in service revenue and driving long-term value for stakeholders through strategic investments and operational excellence.

The interim dividend, approved by the Board of Directors on July 30, 2024, will be paid on September 6, 2024. Shareholders registered in the company’s books at the close of business on August 16, 2024, will be eligible for the dividend, with the ex-dividend date set for August 14, 2024.