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MTN Ghana signs roaming deal with AT, as Telecel deal nears

Stephen Blewett, CEO of MTN Ghana.

METERIt has been revealed that TN Ghana has signed a long-term roaming agreement with AT (formerly AirtelTigo) and is nearing the end of negotiations with Telecel for a similar agreement.

Reporting on its performance in the first quarter, the telco provided a national roaming update, stating that infrastructure sharing is critical to ensuring universal access and accelerating Ghana’s digitalization process.

Stephen Blewett, CEO of MTN Ghana, commented on the company’s performance in the quarter, stating that the telco continues to deliver on its Ambition 2025 targets despite the challenges posed by macroeconomic headwinds that impacted business operations.

He noted that “these include driving revenue growth and cost efficiency, as well as creating shared value for all stakeholders. These efforts supported a strong first quarter 2024 result, with service revenue growth of 32 .4% year-on-year (YoY) and a strong EBITDA Margin.”

In terms of other key indicators, MTN Ghana’s mobile customer base increased by 1.2% to 27.8 million, active data subscribers increased by 15.3% to 16 million and active mobile money users (MoMo ) increased 16.1% to 15.6 million during the same time. .

In terms of key financial indicators, the telco’s service revenue increased by 32.4% to GHS 3.8 billion, earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 31.6% to GHS 2.1 billion and EBITDA margin decreased by 0.4 percentage points to 55.9%.

Total capital expenditure for the quarter was GHS 1.2 billion (lease excluding: GHS 852.2 million), while the company paid GHS 1.7 billion in direct and indirect taxes (2023: GHS 1.1 billion).

Looking ahead, according to Blewett, Ghana’s macroeconomic outlook for the remainder of 2024 is expected to remain difficult due to high inflation, monetary volatility and foreign exchange shortages, all of which could have an impact on economic growth. and the costs of living of citizens.

Blewett said: “The government forecasts that inflation for the year will be within the band of

between 13% and 17% before gradually returning to the medium-term target range of six percent to 10% by 2025.

“We are fully committed to executing our Ambition 2025 strategy, even in the face of a challenging economic outlook. “We will continue our cost efficiency program to safeguard margins and preserve liquidity.”

He went on to say that the company continues to focus on driving growth through efficient investment in infrastructure to improve the quality of connectivity.

“MTN Ghana is committed to improving our platforms such as myMTN, ayoba and the MoMo app to provide better services. Additionally, we aim to capitalize on the high demand for data, especially in rural areas, and promote smartphone usage among the masses. “We also plan to address the need for high-speed Internet in the home broadband market.”

In doing so, it said: “We will continue to increase our partnerships with various financial institutions, agents and merchants to expand the mobile money ecosystem and improve the convenience for our customers to transfer money to others, make payments through merchants, save, and access microcredits, microinsurance and international remittance services.”