MTN targets 15% growth in 3-yrs…but fears COVID-19 presents risk

CEO of MTN Ghana, Mr. Selorm Adadevoh delivering a speech at MTN Bright Scholarship Awards Ceremony

Telecommunications firm MTN Ghana is targetting a growth of 13-15 percent over the next two to three years, according to its Chief Executive Officer, Selorm Adadevoh.

The company plans to achieve the projected growth by increasing its foothold in the voice, data, mobile money and enterprise business; and through an ultra-rural site roll-out strategy to expand coverage to remote areas, Mr. Adadevoh said when he took his turn at the Ghana Stock Exchange Facts Behind the Figures in Accra.

MTN also plans to become a digital operator, whereby it is seeking to be a key player in fintech, digital messaging and media as well as digital advertising, a venture that it hopes can drive the company’s growth further.

“We are expecting a 13-15 percent year-on-year growth over the next two to three years. We are excited about what the future presents, especially when you look at our plans to grow the adjacent businesses over our traditional businesses such as mobile money, digital and enterprise businesses,” he said.

The Telco’s growth, according to him, is led by its BRIGHT strategy, which stands for: Best customer experience; Returns and efficiency focus; Ignite commercial performance; Growth through data and digital; Hearts and minds; and Technology excellence.

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“The growth is led by our BRIGHT strategy, whereby we are focusing on improving customer experience, driving growth in a data and digital portfolio and our mobile money business,” he added.

In 2019, MTN Ghana recorded a profit after tax of GH¢1billion, representing a 33.56 percent increment compared to the GH¢754.6million recorded in 2018. This performance, Mr. Adadevoh said, his outfit is working hard to improve on.

The 2019 growth in profit, says the company, is attributed to an improvement in active data users, growth in smartphones and increase in data usage.

Similarly, its total revenue for 2019 grew by 22.8 percent, GH¢5.1billion – up from the GH¢4.2billion recorded in 2018.

Coronavirus presents real risk

Although Mr. Adadevoh acknowledged that continuous spread of the Coronavirus could impact MTN’s operations negatively, especially in the area of supply of equipment from countries hit by the deadly virus, he noted that the company is taking steps to minimise any impact arising from it.

“It is obviously one of our top risks that we are looking at today, and a big risk is with our supply chain. Every year we continue to expand our equipment from the IT side, as well as on the network side.

“So, we are working with our vendors to ensure that impacts of the coronavirus on our capacity needs are minimised. We will also continue to work with suppliers as well as on the human side, to make sure that their own processes to manage the Coronavirus are tight and ensure that our mitigation strategies are confirmed. So, we do flag it as a risk – but we are doing everything we can on our part to ensure that the impact of any delays is minimal to our business,” he said.

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