In its mid-year 2023 earnings report, MTN Ghana, the prominent telecommunications company in Ghana, revealed that it allocated more than GHS2 billion towards improving its network and IT infrastructure during the initial half of 2023.

The investment was aimed at enhancing network quality.

CEO of MTN Ghana, Selorm Adadevoh, in his comments contained in the report said “Enhancements to the network and IT systems were made possible through an investment of GHS2.2 billion in total capex."

He noted that MTN grew its 4G coverage to 99.3% of the population and rolled out 156 2G, 159 3G and 156 4G sites in the first half of 2023.

"Capex growth of 97.4% Year-on-Year was driven by acquisition of spectrum licenses, accelerated infrastructure deployment as well as an increase in International Financial Reporting Standards (IFRS16) lease costs which was driven by inflation-induced escalations on tower lease agreements," he added.

In line with its obligations to the Government and its agencies, MTN Ghana disclosed that it paid taxes, levies, and governmental agency fees amounting to 48% of its revenue.

Mr Selorm Adadevoh, reiterating the company's commitment, emphasized that MTN Ghana is a compliant taxpayer and plays a significant role in Ghana's fiscal and socioeconomic progress. In the first half of 2023, the company contributed GHS2.7 billion in direct and indirect taxes, along with GHS228 million in fees and levies to Governmental agencies.

Selorm Adadevoh assured stakeholders that MTN Ghana will continue investing in platform development, network enhancement, and service improvement to generate value in alignment with its Ambition 2025 strategy.

Regarding potential macroeconomic challenges, he expressed that the company will adopt efficiency measures, ensure liquidity, and exercise disciplined spending to mitigate business impact amid prevailing macroeconomic uncertainties.

Remaining committed to creating shared value, MTN Ghana advanced its social intervention initiatives and achieved significant progress in key projects. The CEO noted the company's dedication to enhancing the lives of Ghanaians through sustainable socioeconomic interventions.

Notably, MTN Ghana made substantial strides in constructing a 60-bed maternity and neonatal center for the Keta Municipal Hospital and establishing a STEM robotics lab for the Mamfe Girls' School. Completion and handover of these projects to appropriate authorities are anticipated in the second half of 2023.

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.”

During the first half of 2023, MTN Ghana achieved a notable 27.9% rise in its profit after tax, amounting to GHS1.77 billion. Additionally, the company witnessed a 29.4% growth in earnings before interest, tax, depreciation, and amortization (EBITDA), totaling GHS3.5 billion. However, there was a slight 1.3 percentage points (pp) decrease in the EBITDA margin, settling at 56.1%.

Selorm Adadevoh attributed this commendable performance to the effective execution of commercial strategies, the pursuit of operational efficiencies, and the creation of shared value for various stakeholders.

These accomplishments were attained even in the face of a challenging macroeconomic landscape experienced in the first half of 2023.