MTN Group’s Ghana operations have successfully met the West African nation’s localization requirements for its 4G license.
In its mid-year report, MTN Ghana informed shareholders of this significant achievement. “By the end of the second quarter, the level of local ownership of Scancom PLC was 27.9%. As a result, the regulator has confirmed Scancom PLC’s achievement of the 25.0% localisation requirement for its 4G licence,” the company stated.
MTN Ghana reaffirmed its commitment to further localizing Scancom PLC and MobileMoney Limited, vowing to continue collaboration with regulators and stakeholders to reach its goals. Scancom PLC is the registered name of the telco in Ghana, also operating MobileMoney Limited as a separate entity under MTN Ghana.
This development comes as MTN Group, Africa’s largest telecom provider, ramps up local investments across its operations on the continent. Notably, MTN has increased its local shareholder base in Nigeria to 139,000 retail investors by the end of the March 2024 quarter. This follows the group’s recent announcement to reduce its investment in Nigeria by over 10%, aligning with its localization strategy.
In Uganda, MTN recently concluded a share offer, meeting the 20% minimum public float required by both the Uganda Stock Exchange and the Uganda Communications Commission.
During the first half of 2024, MTN Ghana reported a 3.9% increase in its mobile customer base, reaching 28.4 million. Active data subscribers grew by 15.9% to 16.4 million, and active Mobile Money users rose by 16.2% to 16.5 million.
Financially, MTN Ghana saw a 31.2% rise in service revenue, reaching $526 million (GHS8.1 billion), while earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 31.3% to $298 million (GHS4.6 billion), maintaining an EBITDA margin of 56.1%.
The company’s total capital expenditure exceeded $181 million (GHS2.8 billion), with ex-lease capex at $110 million (GHS1.7 billion). MTN Ghana’s direct and indirect tax payments increased by 44.4% to $253 million (GHS3.9 billion) compared to $175 million (GHS2.7 billion) in 2023. The interim dividend also saw a 30% rise within the six months.
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Looking forward, CEO Stephen Blewett emphasized MTN Ghana’s ongoing investments in platform development and network enhancement to deliver stakeholder value in line with its Ambition 2025 objective. “We 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 company stated.
