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MTN Ghana has downplayed concerns over Starlink’s entry into the Ghanaian telecommunications market, maintaining confidence in its ability to thrive amidst competition.
Stephen Blewett, MTN Ghana’s Chief Executive Officer (CEO), described Starlink as “just another competitor” during the company’s 7th Annual General Meeting (AGM) held on Thursday, March 27, 2025, at the Accra International Conference Centre.
Responding to questions from shareholders, Mr Blewett emphasised that MTN Ghana had already begun strategic investments to strengthen its market position and deliver superior services to Ghanaians.
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“Starlink is like any other competitor. We view them as any other competitor, but there are a few things to consider. Starlink, in one part, is a potential competitor when it comes to direct-to-devices in the home. So, you saw that we are investing a lot in our fixed wireless and our fibre. That, in some way, is responding to that,” he remarked.
Mr Blewett acknowledged Starlink’s potential impact on direct-to-home broadband services but pointed out MTN Ghana’s comprehensive approach to fixed wireless and fibre investments as a robust response.
Interestingly, the MTN CEO revealed that collaboration with Starlink was also being explored, particularly in scenarios where Starlink’s satellite technology could serve as a redundant backup for international cables, enhancing network resilience.
He noted, however, that Starlink’s satellite-based service could be affected by weather conditions like the harmattan—a dry, dusty trade wind that can disrupt satellite signals—positioning MTN’s fibre and fixed wireless services as more consistent and reliable.
At the AGM, MTN Ghana’s Board Chairman, Ishmael Yamson, announced a final dividend payment of 24 pesewas per share pending shareholder approval, scheduled for April 16, 2025. The company’s total dividend for 2024 stands at 30.5 pesewas per share, translating to GH₵4.0 billion, representing 80% of the company’s profit after tax of GH₵5.0 billion. This marks a 35.6% increase in dividend per share compared to 2023.
“As a result of the performance of the company, the Board of Directors is pleased to recommend a final dividend payment of 24 pesewas per share to our shareholders for approval,” Mr Yamson stated.
Despite a challenging macroeconomic environment characterised by high inflation and currency depreciation, MTN Ghana delivered a remarkable performance in 2024. The company recorded a 34.5% year-on-year growth in service revenue, driven by strong demand for data, mobile money (MoMo), and digital services.
Key Highlights of MTN Ghana’s 2024 Performance:
- Data revenue surged 53.8% to GH₵9.0 billion due to a 13.7% increase in active data subscribers and increased mobile data usage.
- Mobile Money Revenue grew 54.4% to GH₵4.4 billion, driven by a 12.8% rise in active MoMo users.
- Digital Services Revenue increased 66.1% to GH₵228.2 million, reflecting strong demand for video content, gaming subscriptions, and ring-back tones.
- Voice revenue declined 0.9% to GH₵3.5 billion as consumers increasingly embraced Voice over Internet Protocol (VoIP) services.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 31.3% year-on-year, with an EBITDA margin of 57.1%, a slight decline from 58.4% in 2023.
Mr Blewett attributed the macroeconomic challenges to high inflation and rising production costs. He noted that Ghana’s inflation rate reached 23.8% in December 2024, driven by agricultural price hikes, rising energy costs, and currency depreciation.
“This surge in inflation was primarily driven by escalating prices across agricultural-related goods and services, compounded by rising energy costs and production costs,” he explained.
Nonetheless, MTN Ghana leveraged strategic investments in network infrastructure, committing GH₵3.1 billion in 2024. This investment focused on network modernisation and IT system upgrades to handle rising data traffic and deliver better customer experiences.
With a customer base of 28.5 million—a 6.5% increase from the previous year—MTN Ghana remains poised for future growth. The company plans to deepen its 4G coverage, enhance digital services, and drive mobile financial solutions while maintaining its industry leadership.
Mr Blewett reiterated MTN Ghana’s commitment to innovation and transformation in the face of market disruption from players like Starlink.
“Together, we have not only navigated obstacles but have also positioned ourselves for future growth and innovation,” remarked Board Chairman Ishmael Yamson.
MTN Ghana aims to leverage technology to create inclusive digital experiences while delivering affordable services to Ghanaians.
With Starlink’s entry into Ghana, the competitive landscape may shift, but MTN Ghana’s proactive strategies, focus on network investment, and potential collaborations suggest the company is well-positioned to weather the storm and maintain market leadership.
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