Ghanatodayonline.com News, Politics, Health, Education & More
MTN Ghana, the largest telecommunications provider in Ghana, said in its earnings announcement for the first half of 2023 that it had invested more than GHS2 billion to upgrade its network and IT systems in order to improve network quality.
Improvements to the network and IT systems were made possible by an investment of GHS2.2 billion in total capex, according to Selorm Adadevoh, CEO of MTN Ghana.
In the first half of 2023, we rolled out 156 2G, 159 3G, and 156 4G sites, increasing our 4G coverage to 99.3% of the population. Capex increased by 97.4%. The purchase of spectrum licenses, expedited infrastructure rollout, and a spike in International Financial Reporting Standards (IFRS16) lease costs—which were caused by inflation-induced escalations on tower lease agreements—were the main drivers of year-over-year growth.
MTN Ghana also paid the equivalent of 48% of its revenue in taxes, levies, and payments to governmental agencies as part of its commitments to the government and its agencies.
MTN Ghana is a tax-compliant corporate citizen and makes a sizable contribution to the fiscal and socioeconomic growth of Ghana, according to Selorm Adadevoh. MTN Ghana paid GHS2.7 billion in direct and indirect taxes during the first half of 2023, in addition to GHS228 million in fees, levies, and other contributions to governmental organizations.
In accordance with the company’s Ambition 2025 goal, Selorm Adadevoh promised stakeholders that MTN Ghana would continue to invest in platform development as well as in network and service improvements to maximize value for all parties. Selorm Adadevoh stated that the company will continue to investigate efficiency measures, preserve liquidity, and apply spend discipline to mitigate the business impact from the prevailing macroeconomic uncertainties in his response to the potential risk of Ghana’s macroeconomic challenges on the business.
MTN Ghana continued its social intervention programs while making great progress on a number of important projects in the pursuit of shared value. A 60-bed maternity and neonatal center for the Keta Municipal Hospital and a STEM robotics lab for the Mamfe Girls’ School are both under construction. According to the CEO, MTN Ghana is still dedicated to improving the lives of Ghanaians through appropriate and sustainable socioeconomic interventions. These initiatives are anticipated to be finished in the second half of 2023 and turned over to the appropriate authorities.
MTN Ghana also announced adjustments in its market guidance on business performance over the medium term. Selorm Adadevoh said “Going into the second half of 2023, we do take cognisance of the possible dampening effect on Ghana’s economy from upward inflationary pressures, risks from Ghana’s debt sustainability and currency volatility. However, based on the effective execution of our business strategy, MTN Ghana has revised its medium-term guidance upwards from low-twenties to high-twenties (in percentage terms) growth in service revenue.”
MTN Ghana recorded a 27.9% increase in profit after tax of GHS1.77 billion in the first half of 2023. Earnings before interest, tax, depreciation and amortization (EBITDA) also increased by 29.4% to GHS3.5 billion while EBITDA margin decreased by 1.3 percentage points (pp) to 56.1%. Selorm Adadevoh attributed this performance to the effective execution of commercial plans, driving operational efficiencies, and creating shared value for its stakeholders despite a challenging macroeconomic environment in the first half of 2023.
Source: Ghanatodayonline.com
