MTN Ghana opens Q3 2018 earnings season with 21%y/y rise in profits

MTN Ghana has opened the Q3 2018 earnings season in Ghana as it announces 21.1%y/y rise in net earnings to GHS599.88 million for the first nine months in 2018 through Data usage and Mobile Money (MoMo).

MTN Ghana has declared an interim dividend of GHS0.02 per share in respect of the 2018 financial year, which is expected to end in December 2018.

The telecommunication giant’s market valuation has appreciated by 20.0% since its listing on the Ghana Stock Exchange to GHS0.90 per share.

Also, the interim dividend indicates a dividend yield of 2.2% based on the prevailing market valuation of GHGS0.90 per share.

According to MTN Ghana, during the quarter, they delivered a strong performance, driven by solid service revenue growth of 22.9%, Data revenue increased by 30.9% YoY while digital revenue expanded by more than 28%, which was driven by MoMo and as a result increased revenue by 16%.

More so, MTN Ghana reported an EBITDA margin of 37.6% in the first nine months of the year. This is 1.3 percentage points lower than the margin in the first nine months of 2017.

Excluding the impact of the reintroduction of management fees in May 2018, the EBITDA margin would have been 40.4%.

Subscriber performance was as follows:
1. Subscribers were 19.4 million (17.1 million*)
2. Data subscribers were 14.3 million (5.8 million#)
3. Mobile money subscribers were 9.4 million (7.9 million*)

The company added that “MTN Ghana in Q4 will continue to pursue our BRIGHT strategy for 2018 to drive good performance and strive towards our vision to lead the delivery of a bold new digital world to customers and to make their lives a whole lot brighter”

Declaration of interim ordinary dividend

Notice is hereby given that a gross interim dividend of GHS0.02 per share for the period to 30. September 2018 has been declared. This is subject to the deduction of appropriate taxes.

The number of ordinary shares in issue at the date of this declaration is 12 290 474 360.

Scancom Plc.’s (MTN Ghana) tax reference number is C0003632776. In compliance with the requirements of GSE rules, the salient dates relating to the payment of the dividend are as follows:

Declaration date: Thursday, 18 October 2018
Ex-dividend date: Wednesday, 7 November 2018
Qualifying date: Friday, 9 November 2018
Closure of register: Monday, 12 November 2018 – Thursday, 15 November 2018
Dividend payment date: Wednesday, 21 November 2018
All shareholders registered in the books of MTN Ghana (MTNGH) at the close of business on Friday, 9.November 2018 will qualify for the interim dividend.

In view of this the register of shareholders will be closed from Monday, 12 November 2018 to Thursday, 15 November 2018 (both dates inclusive). And as a result of the foregoing, the ex-dividend date has been set for Wednesday, 7 November 2018.

Consequently, an investor purchasing MTNGH shares before this date will be entitled to the interim dividend.

However, an investor buying MTNGH shares on or after Wednesday, 7 November 2018 will not be entitled to the interim dividend.

ALSO READ: Noel Kojo-Ganson appointed as new CMO of MTN Ghana