Prime News Ghana

MTN pays GH¢ 9.9 million as dividend to SSNIT

By Justice Kofi Bimpeh
MTN
MTN logo

MTN Ghana has paid out a total dividend of over GH¢9.9 million to its third largest shareholder the Social Security and National Insurance Trust (SSNIT).

This follows approval of a final dividend of 3 pesewas per share by shareholders of MTN at the AGM yesterday (May 14, 2019). This brings the total dividend payable to 5 pesewas per share after MTN declared an interim dividend of 2 pesewas per share in November 2018.

Speaking to Citi FM after receiving the total dividend payout on behalf of SSNIT, the Deputy Director-General in charge of Finance and Administration at SSNIT Michael Addo, said the amount being paid by MTN Ghana in less than a year of investment, is indicative of the telecom company’s strong performance in the past year.

“In July 2018, during MTN’s IPO we acquired about 198.7 million shares at 75 pesewas per share. So if in less than a year they are paying us this (GH¢9,937,274), I would have to say that it is commendable. We would, however, like to see more and we’re confident MTN will deliver in the coming year. ”

On his part, Modupe Kadri, the Chief Financial Officer for MTN Ghana revealed that the 5 pesewas per share total dividend payout represents a majority of the company’s profit after tax for 2018.

“The 5 pesewas per share actually represents an 81.1% payout of the profit after tax and will represent a 14.4 % increase over the dividend we paid in 2017.”

MTN records GHS710m revenue in 2018

MTN recorded more than GHS710 million in revenue from its mobile money operations in 2018, an increase of more than 60 percent year-on-year, according to the information contained in the company’s 2018 Annual Report.

The strong performance in revenue translated into mobile money contributing 17.7 percent of the group’s total revenue which stood at GHS4 billion.

According to MTN, the growth in MoMo’s performance was largely driven by fees customers paid for cash out, commissions and transfer services – which represents 87.8 percent of total MoMo revenue.

As at end 2018, there were more than 13.6 million registered mobile money subscribers with 8.4 million active users of the service.

The 2018 mobile money subscriber base represents a 17.8 percent increase in the 2017 figure.

MTN Ghana to acquire another 4G spectrum

Management of MTN Ghana has disclosed their readiness to purchase the remaining 4G spectrum on offer by the National Communications Authority (NCA).

According to MTN Ghana, the purchase will improve its quality of service delivery and expand its network operations. MTN was initially excluded from purchasing any of the three (2 x 5) megahertz spectrums that the NCA sold last year.
One of the spectrums was purchased at a cost of US$30 million.

Speaking to Citi FM, CEO of MTN, Selorm Adadevoh explains that although the NCA is yet to officially invite other interested companies to purchase the remaining spectrum, it is open to securing it when the offer is eventually made.

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