Industry News

Mr Ishmael Yamson, Chairman of MTN Ghana Tuesday said the company recorded a strong financial performance in 2018 with profit before tax increasing by 16.5 per cent to GH¢1.6 billion, while earnings per share was GH¢0.067.

He said the performance was a testament to the disciplined execution of the company’s strategy of maintaining a strong balance sheet, improving profitability and driving operational efficiencies.

Speaking at the company’s Annual General Meeting in Accra, Mr Yamson said, at the close of 2018, the company had a market capitalisation of GH¢9.7 billion, making it the third largest listed company on the Ghana Stock Exchange.

Touching on dividends, Mr Yamson said the board declared an interim dividend of 2 pesewas per share after reviewing the 3rd quarter performance of the company.

“After reviewing the full year performance of the company in 2018, the board shall be recommending a final dividend of 3 pesewas on ordinary shares, bringing the total dividend for the year to 5 pesewas per share or 81.2 per cent of profit after tax”, he added.

Touching on the share price performance, he said the company’s share price recorded a 5.33 per cent price gain for the year ended December 31, 2018, with a 52-week high of GH¢0.93 and low of GH¢0.75, and a share price at the end of 2018 was GH¢0.79.

On corporate governance, he said the company remained resolute in upholding high standards to drive sustainable growth, and would continue to embed a culture of no tolerance for corruption through its robust conduct management framework.

He said the company had invested in relevant tools needed to provide an integrated approach to the management of governance, risk and compliance across the business space.

Focusing on the country’s political and economic performance, Mr Yamson said the country sustained its democratic credentials and remained politically stable and vibrant.

“We urge the government to work with parliament to give sustained assurance to long-term investors, as the country gets closer to its Presidential and Parliamentary elections in 2020”.

He said the establishment of an Independent Fiscal Responsibility Council and a Fiscal Stability Council by government must provide anchors to fiscal prudence and if pursued with rigour, the company would see macroeconomic stability for the rest of 2019.

Mr Selorm Adadevoh, the Chief Executive Officer of MTN Ghana said Mobile Money (MoMo) subscribers increased by 17.8 per cent to 13.6 million supported, by consistent service delivery across all channels.

He said the increase in subscriber resulted in a 23.5 per cent increase in the service revenue as recorded and it was driven by the strong growth in voice, data and digital revenue including MoMo.

MoMo revenue, he said, increased by 60.3 per cent year on year, adding that, MTN MoMo supported digital growth and increased its contribution to 17.7 per cent of total revenue.

He said for the company to maintain its relevance in the telecommunications industry, it would have to continue to innovate, create and build meaningful relationships to improve customer experience.

He said the improved network, coupled with aggressive marketing, sales and products, had resulted in growth in subscriber base.

Mr Adadevoh said the National Communications Authority opened a tender for the 800Megahertz spectrum of three blocks of 2x5MHz, and that MTN Ghana was excluded from the tender on the basis that it already holds spectrum in the 800MHz band.

He said only one lot of the 2x5MHz was taken up by Vodafone Ghana and so MTN Ghana is interested in acquiring the remaining spectrum for network expansion and quality of service improvement.

Some of the stakeholders commended MTN Ghana for the achievements and called for increment on their dividend.

They urged management to institute proactive and effective governance management measures to ensure sound fiscal performance.

Source: GNA

Facebook’s instant messaging app WhatsApp has been hit with a security breach, which leaves users vulnerable to malicious spyware being installed on their phones reports.

The company said it discovered the breach this month and informed the US Department of Justice last week, as well as its lead regulator in the EU, Ireland’s Data Protection Commission.

A Facebook spokesperson urged users to upgrade to the latest version of the app and keep their operating system up to date, as a way to protect against threats designed to compromise information stored on mobile devices.

“We are constantly working alongside industry partners to provide the latest security enhancements to help protect our users,” the spokesperson told Reuters.

The Financial Times (FT) provided details on the breach, reporting attackers were able to inject commercial Israeli spyware on both iPhones and Android powered smartphones by ringing users and targeting the app’s call function.

FT said the code was developed by Israeli company NSO Group, and could violate devices even if users did not answer their phones. Often, the calls would disappear from call logs.

WhatsApp, which is still investigating the issue, said it was too early to reveal exactly how many users had been affected, an FT source added.

NSO’s products and technology are designed for intelligence agencies in the west and Middle East, with its flagship Pegasus programme intended to fight crime and terrorism. The programme can turn on a phone’s microphone and camera, as well as access emails, messages and location data. NSO told the FT it carefully vetted customers and investigated any abuse, adding it was looking into the WhatsApp hack.

Source: mobileworldlive.com

The Asantehene, Otumfuo Osei Tutu II has commended AirtelTigo for its continued support and investment in education, specifically its efforts in improving the lives of children within deprived communities across the country.

His Royal Majesty made the remarks at his Palace in Manhyia, when the leadership of AirtelTigo led by the Chief Executive Officer, Mrs Mitwa Kaemba Ng’ambi paid a courtesy call on him to congratulate him on his 20th anniversary celebration as the King of Asanteman.

The Asantehene applauded the company for its enormous contribution towards teaching and learning in Ghana by improving the learning conditions of pupils in underprivileged communities.

He also pledged his support for the company’s new Corporate Social Responsibility initiative “Yεn Nkͻsoͻ Nti” (meaning ‘for our development’) which aims to support and enhance public school education in disadvantaged communities in the Ashanti, Bono and Ahafo regions.

Under “Yεn Nkͻsoͻ Nti” initiative, AirtelTigo will invest one percent of proceeds from airtime recharge by its customers in those regions, into the development of educational facilities.

On behalf of the team, Mrs Ng’ambi commended Asantehene for his strong and enduring leadership exhibited over the years, adding that: “Beyond Ashanti region, it is also significant to note your contribution to peace and developments in Ghana.”

She donated an amount of GHS20, 000.00 towards the Otumfuo Charity Foundation to support education while affirming the company’s commitment to supporting education as one of the focus areas of its Corporate Social Responsibility programmes.

“We believe that education holds the key to the successful development of any nation and us investing in the education of children is one of the surest ways of having a long-term impact in these communities,” she said.

She explained that the company’s long-term goal to heavily invest in education is a way of contributing to help Ghana advance on the Sustainable Development Goal 4. She reiterated its commitment to making life simple through innovative products and services for its customers and businesses across the nation.

Source: AirtelTigo.com.gh

MTN Ghana has stated that the government of Ghana loses millions of cedis as a result of fibre cuts that the company has been experiencing.

They say the company has been losing millions in recent months due to persistent fibre cuts.

According to them, they lost 39 million Ghana cedis as a result of fibre cuts suffered between October 2018 and February 2019.

Speaking to Journalists in Kumasi at an editors’ forum and as part of MTN Ashantifest, Corporate Service Executive of MTN, Mr. Samuel Koranteng said out of the 39 million loss, they would have paid a tax component of about 17.5 million Ghana cedis.

Fibre technology helps to improve the quality of service by network providers.

The fibre cables are fixed in the ground to help ensure strong network connectivity in areas they have been fixed, but fibre cuts result in low quality of service.

According to MTN, activities of road contractors, illegal mining activities among others lead to fibre cuts which affect their network adversely.

Mr. Koranteng indicated that one fibre cut costs the company over 6000 Ghana cedis. He added that, from January 2019 to April 2019, the company has experienced 489 fibre cuts which have been affecting the company badly.

“From January this year to the end of April, we suffered up to 489 fibre cuts across the country. Out of this figure, 150 were in the Ashanti region. So you realize that out of the total number of regions we have, the Ashanti region accounts for a very high number.”So we also went down to look at the revenue impact for MTN and we realized that as a result of the fibre cuts we suffered from October 2018, to end of February, we haven’t gone into March and April, the loss of revenue is approximately 39 million Ghana cedis.”

He said “when you look at the benefits government would have had out of it if we had realized that revenue, the tax component of that- that is an approximation of about 17. 5 million Ghana cedis so one fibre cut isn’t a revenue loss to MTN. It is a revenue loss to the state as well as all other businesses who use our network – our connectivity to do their business.”

“So you can imagine if we are able to do a survey of all businesses and all people who have experienced revenue loss as a result of this fibre cut, the figure will be much much bigger. If the government had realized this revenue, they would have put it to national development,” he added.

MTN says it is collaborating with the Roads and Highways Ministry to arrange with contractors to help avoid the prevalent phenomenon.

MTN also appealed to the general public to help avoid fibre cuts which lead to loss of revenue to both the company and government through potential tax revenue.

Source: citinewsroom.com

African operator group MTN published a trading update for the first quarter of 2019, stating it had met its medium-term revenue growth target with a 10 per cent increase led by its operations in South Africa, Nigeria and Ghana.

Group service revenue (excluding Cyprus) was ZAR33.2 billion ($2.3 billion), of which ZAR9.1 billion was from South Africa (up 4.6 per cent year-on-year) and ZAR10.8 billion from Nigeria (up 13.4 per cent at constant currency).

In a statement, the company noted a provisional report from South Africa’s Competition Commission regarding an inquiry into data pricing, stating it will respond by the 14 June 2019 deadline.

The body had said benchmarking had confirmed prices were high, particularly for prepaid customers, stating that “disturbingly”, data from the Independent Communications Authority of South Africa showed higher pricing for MTN and peer Vodacom when compared with the other countries in which they operate.

Rob Shuter, group CEO, said: “In South Africa, we implemented changed pricing for prepaid propositions where we reduced, materially the out-of-bundle tariffs, making data services much more affordable.”

The company also argued for the “urgent release of high demand spectrum” to deliver lower cost data services, and noted a “viable wholesale market” which enables smaller operators and MVNOs to provide “compelling” propositions to customers.

As part of efforts to boost its fintech business, MTN launched Ayoba, “Africa’s first instant messaging platform,” in Ivory Coast and Cameroon. Expansion into other markets and the integration of payments are planned for the second half of 2019.

Rises
The group cited growth in its voice, data and fintech revenue of 5.9 per cent, 18.3 per cent and 30.6 per cent respectively. Digital revenue declined 45.4 per cent, as a result of work to optimise its value added services business.

Group subscribers increased 4 million during the quarter to reach 236.6 million. Active data subscribers were up 2.6 million to 81.3 million; active MTN Mobile Money customers increased 1.2 million to 28.3 million.

MTN said it expects the disposal of its Mascom (Botswana) stake will close by the end-June, subject to regulatory approvals. Its e-commerce joint venture, Jumia Technologies, raised fresh capital and listed on the New York Stock Exchange: MTN’s stake is valued at around $560 million.

It also completed its conversion of MTN Nigeria to a public company ahead of an expected listing on the country’s stock exchange in the near future. A tax dispute in the country is ongoing.

Source: mobileworldlive.com

The much anticipated Vodafone 62nd Asantehene Open Golf Championship kicks-off today, Wednesday, May 8th, 2019 at the Royal Golf club in Kumasi.

The four-day championship, a flagship event in the Ashanti Region, is bringing together 300 amateur and professional golfers across the country and the sub-region to do battle.Title sponsors, Vodafone Ghana, is using the platform to project its innovative and creative brand in the telecommunications sector.

It will also be an avenue to build lasting relationships with key stakeholders in the Asanteman region.Chief Executive of Vodafone Ghana, Patricia Obo-Nai said Vodafone Ghana’s involvement has brought a renewed sense of awareness across the entire region, adding this year will present a better experience.

“We remain committed to the advancement and progress of Asanteman and we look forward to using this platform to continue building strong and lasting relationships with our customers. We also want to congratulate the Asantehene on twenty years of maintaining leadership across these parts of the country,” she said.The Asantehene Otumfuo Osei Tutu II is expected to grace the golf grounds on Friday, May 10 in the company of other dignitaries, including the Sports Minister and the Kumasi Mayor, to perform a short official ceremony. Other activities lined up during the period includes a Royal Dinner at the Manhyia Palace on Saturday, May 11, for selected guests.

The championship will end on Sunday afternoon with the closing ceremony and the presentation of prizes.

Source: myjoyonline.com

Mobile phone company MTN said on Thursday it met its medium-term revenue growth target in the first quarter by delivering 10 percent year-on-year growth led by strong operational performance in South Africa, Nigeria and Ghana.

“We are encouraged by the operational progress we continue to see across the business, supported by the network roll-out we achieved and enhancements to the propositions that we offer to our customers,” group CEO Rob Shuter said.
“In South Africa, we implemented changed pricing for pre-paid propositions where we reduced, materially the out-of-bundle tariffs, making data services much more affordable.”

Shuter said MTN had taken note of a provisional report from South Africa’s Competition Commission inquiry into data services and would respond by June 14.

He said the company remained of the view that the release of high demand spectrum in South Africa was critical to providing affordable and ubiquitous data services for citizens.The commission found that South African data prices were high compared to other countries.

On Thursday, MTN group chief financial officer Ralph Mupita said the company’s growth in service revenue was supported by the continued expansion in voice, data and fintech revenue which increased 5.9 percent, 18.3 percent and 30.6 percent respectively.

Source: African News Agency

MTN Ghana has begun the celebration of its 9th annual Ashanti regional festival dubbed ‘Ashantifest.’

The month-long celebration, from 30th April – 31st May, is aimed at celebrating MTN’s customers in the Ashanti region.

The regional festival started with the Customer Outreach Day and MTN Music Festival.

The music festival will bring together celebrated artists across the country, with key performances by Sarkodie, Rex Omar, and Okyeame Kwame.

MTN staff also went out to interact with customers in the markets in the region and in other parts of the country.

Other exciting, life enriching activities to be rolled out across the region during the festivities include the following Kotoko pitch handing over, media and Stakeholders’ forum, official opening of new MTN Service Center in Kumasi, health walk & medical screening, data/device activation, device bazaar and movie mania.

Speaking at the launch of the 2019 Ashantifest, the Corporate Services Executive Sam Koranteng said, MTN created Ashantifest nine years ago to celebrate the people of Ashanti Region..

He added that this year’s festival is very unique because it coincides with the 20th Anniversary celebration of His Majesty, Otumfuo Osei Tutu II.

“This significant event in the calendar of Asanteman allows us to celebrate the rich cultural heritage of Asantemen as we deepen customer relationships and foster business connections and growth,” Mr Koranteng noted.

He added “particularly, with the business declaration of 2019 as the Year of the Customer, we are committed to make it as exciting at all touch points.”

Ahead of Ashanifest, and in support of the development in the Ashanti region, MTN recently commissioned a Palm Oil Processing Center for the people of Juaso and also donated an amount of Ghc100,000 towards the ongoing 20th anniversary celebration of Otumfuo Osei Tutu II.

Through the creation of the MTN regional festivals, the Ashanti region has benefitted from a lot of life-enriching projects which are brightening the lives of a larger number of the populace.

Some of the projects include the Oweriman dormitory block, Juaso – Nkyesa Basic School, Fomena Male and Female Ward and an ICT Center for Akyawkrom among many significant others.

Ashantifest is one of several regional festivals designed by MTN across the country to acknowledge and promote the rich culture of the communities in which the company operates.

Other regional festivals include Koftownfest (Eastern Region) Twin City Fest (Western Region), Suncityfest (Brong Ahafo Region) and Savannafest (for the Northern and Upper East/West Regions).

Source: Modernghana.com

Government has been cautioned against the creation of artificial scarcity of spectrum, as it will hinder the progress made in closing the digital divide, Goodluck Akinwale , the head of GSMA, Sub-Saharan Africa, has said.

According to him, given the importance of spectrum to mobile broadband, it is essential for governments and regulators to make the right spectrum decisions individually and collectively. This includes ensuring operators have access to sufficient spectrum in a timely and affordable manner: providing support for new network investment and avoiding costly restrictions on spectrum use.

He maintained that connecting everyone and closing the digital divide is a key policy objective for most governments in West Africa. Radio spectrum is the first building block.

Speaking to the B&FT in an interview at the recently held GSMA Mobile360-West Africa conference in Abidjan, he stated: “If mobile operators do not have affordable and predictable access to sufficient spectrum, it will not be possible to achieve universal access, particularly in countries with a high proportion of the population residing in rural and remote areas.”

Spectrum impacts on cost of service, availability of services, quality of services, with government at the helm of spectrum administration, urged to have a clear spectrum plan.
Furthermore, he stated that governments must not restrict spectrum and that it should make spectrum available when necessary.

“It must not create artificial scarcity with spectrum, it must also achieve a fine balance between gov’t treasury receivables from spectrum sale and also without limiting the driver of gov’t for digital inclusion.”

Already, there are progresses in West Africa with the rise of more and more 4G spectrum allocation, “we are seeing governments and regulators in West Africa resolving historically difficult spectrum issues, we have spectrum allocation for countries like Burkina Faso, Togo, Nigeria, Ghana, so we have seen government taken a more proactive approach to spectrum and looking at licensing and administrative models that work for Africa.” he noted.

The Mobile Economy West Africa 2019 report, revealed that spectrum allocation and licensing remains crucial to the delivery of Nigeria’s and other West African countries digital future, the GSMA has identified support for and release of harmonized spectrum and a modernized licensing framework as fundamental building blocks for growth.

Access to mobile is having a profound impact on society, redefining the way individuals and businesses function and interact. Mobile connectivity brings a range of social and economic benefits by helping to promote digital inclusion and supporting the delivery of essential services and key public policy objectives.

Source: thebftonline.com

Vodafone Ghana on Friday launched in Kumasi, a customer-reward promotion, aimed at helping to make life better for its numerous customers.

Mr Dennis Awuah Duah, the Manager for Mass Segment at Vodafone, said the social intervention, one of vodafone’s numerous products, is christened “Magic Recharge Promo”.

It will be running with terms and conditions applied for customers for the next 90 days, across the country.

He explained that the customer gets between 10x and 100x bonus recharges, which could be used for voice calls as well as internet browsing.

The customer, he added would need to buy a GH¢ 2.00 and above recharge card to benefit from the promotion.

“Ghanaians have come to trust Vodafone as a network, which can help them in day to day activities”, he said, adding that, over the years, the company had launched similar novelty products for its customers.

Mr Duah said the recent launch of the 4G network shot-up its customer base and the introduction of the new product, would add to the brand’s efforts at empowering the ever increasing customers.

Beneficiaries of the “Promo”, would have to recharge up to 100x bonus and share the card with two others.

Customers can also win prizes such as Hyundai Creta, motorbikes, phones, airtime and a trip to Dubai, for two persons.

Additionally, top ups through Vodafone cash attract an extra 100 per cent bonus.

Source: GNA