Telecommunications giant, MTN Ghana, says it has recorded a profit after tax of one billion cedis for 2019.
This present a 33.56 percent increment compared to the GH¢754.67 million recorded in 2018.
MTN Ghana attributes the increase in profit to an improvement in active data users, growth in smart phones and increase in data usage.
MTN’s total revenue for 2019 increased by 22.82 percent; it reached GH¢5.18 billion up from the GH¢4.2 billion.
Revenue from non-core services
Of this, other service revenue which excludes non-core activities like the sale of sim cards and mobile devices recorded GH¢5.15 billion in 2019 compared to the GH¢4.19 billion recorded in the previous year.
Meanwhile, the revenue accrued from the sale of sim cards and mobile devices increased by 35 percent, recording GH¢33.7 million between 2018 and 2019. Hence the increase in the company’s profit.
Again, for the same period, mobile money revenue grew by 28 per cent due to an increase in active mobile money subscribers, commissions on momo transactions, and growth in retail merchant payments.
Payment to Government
Furthermore, the financial statement of MTN Ghana also showed that the telecoms company paid a total of GH¢72.16 million into the National Fiscal Stabilization Levy.
This is charged on the profits of companies to help stabilize the government’s revenue and expenditure plans.
The figure witnessed an increase of GH¢18.2 million representing 33.75 percent in 2019 compared to the estimated 54 million cedis the telecoms company paid in 2018.
Owing to this growth, shareholders of MTN Ghana are expected to benefit from a dividend of 6 pesewas per share.
Dividends paid to shareholders
This comprises an interim dividend of 2 pesewas per share and a final dividend of 4 pesewas per share.
Also, 2019’s dividend is an increase of 1 pesewa compared to the 5 pesewas per share dividend paid to shareholders in 2018.