MTN Ghana to spend US$143m on network improvement
MTN Ghana to spend US$143m on network improvement
MTN Ghana is expected to list 35% of its shares on the Ghana Stock Exchange this year and has also approved capital expenditure of US$143.7 million for 2017.
The operator initiated the listing process last year in compliance with conditions linked to the issue of a US$16.5 million 4G license in 2015.
At the 2017 Stakeholder and Media Forum in Accra, MTN Ghana CEO Ebenezer Asante stated that the company will be in a position to launch the IPO as soon as the National Communications Authority (NCA) approves its plans.
He also confirmed the company's capital expenditure would be used to expand and improve the operator's network.
"MTN Ghana will invest $143.7 in CapEx this year. We plan to roll out 197 LTE sites in 2017 in addition to the existing 475 sites to make 4G accessible in all regions," Asante said.
According to him, MTN Ghana will also be improving its 3G and 2G networks to compliment the strides it is making in the 4G space.
"We would also add 561 new sites to our 3G network and 345 new sites to the 2G network," he said.
According to the company's financial results, the company made GH¢7.5m daily as revenue in 2016. MTN's Total revenue rose to GH¢2.77 billion by December 2016 - an increase of 19.8% over the GH¢2.31 billion recorded in 2015.
The GH¢2.77billion revenue divided by 365 days in the year translates into GH¢7.5m (GH¢7,589,041) a day.
The company's performance was boosted by its data services, which contributed 42% of total revenue.
According to Asante, MTN Ghana's data revenue increased by 65.7% year-on-year.
"Our revenues went up by 19.8% supported by a strong performance in data and voice usage. Total revenue went up to GH¢2.77 billion by December 2016 as against GH¢2.31 in December 2015. Data contributed some 42% of our total revenues," he said.
He also urged authorities to abolish the stabilisation levy and resolve the power crisis.
"We contributed a total of GH¢713 million in tax payments in 2016 as against GH¢675.6 million in 2015. Even though major challenges still affect our business," said Asante.