MTN Ghana Pays GH₵ 34.58 Million Dividends To SSNIT
MTN Ghana today presented a cheque of GH₵34,581,713.52 to the Social Security and National Insurance Trust (SSNIT) at the Pension House in Accra dividends for the year ended 2022.
This follows the approval of a final dividend of 12.4 pesewas per share for the 12-month period ended 31st December 2022 at the leading mobile network operator’s fifth Annual General Meeting held in Accra on Tuesday, 30 May 2023.
This brings the total dividend for the 2022 financial year to 16.4 pesewas per share following the interim dividend of 4.0 pesewas per share paid on 22 September 2022.
This represents 70.6% of profit after tax and a 42.6% Year-over-Year (YoY) increase in dividend per share paid in 2022 over 2021.
Presenting the cheque to SSNIT on behalf of Scancom Plc, (MTN Ghana), the Chief Finance Officer (CFO) for MTN Ghana, Mrs Antoinette Kwofie, said: “SSNIT has been a valuable partner and one of our top three shareholders since MTN listed on the Ghana Stock Exchange (GSE) in 2018”.
So, today we are here as a team to show our appreciation by presenting a cheque for the dividends paid to SSNIT covering the 2022 final dividend and the interim 2023 dividend which we just paid a week ago”.
She added that they also wanted to engage with the leadership of SSNIT on how to further grow their partnership.
“Since the listing in 2018, MTN has delivered on its market guidance on revenue growth, margins , and an above 60% dividend payout. Over the period, we have paid out an average of about 73% of our profits after taxes. This translates to a cumulative dividend payment of 51.9 pesewas per share”, Mrs Kwofie stated.
For SSNIT, this is a good investment because the share price at IPO was 75 pesewas per share. As of today, it is at GH₵1.45 and this year alone the share price has gained almost 65%, evidence of the value the market places on the stock.
SSNIT as she said had been with MTN Ghana since its listing. As the telecom giant’s largest Ghanaian shareholder, SSNIT had been the beneficiary of the dividends that MTN Ghana paid.
“In total, since listing, MTN Ghana has paid a total of GH₵103.1 million in dividends to SSNIT, and that includes the GH₵34,581,713.52 that we are presenting today.
We are excited that MTN has been able to contribute this amount since our listing to date as dividends to the coffers of SSNIT to support your strategic mandate of providing income security for workers and contributing towards assuring us all of a guaranteed income when we retire”, MTN Ghana’s CFO said.
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“As you know, we are still on our localisation journey, we are still selling shares to local institutions so we would like to ask SSNIT to consider whether with these attractive returns, you would like to increase your stake in our business”.
Mrs Kwofie used the opportunity to express gratitude to the leadership of SSNIT for their continuous faith and partnership and looked forward to achieving their medium- and long-term targets.
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Receiving the cheque on behalf of SSNIT, the Director General of SSNIT, Dr. John Ofori-Tenkorang commended the management of MTN Ghana for growing the company consistently.
He added: “We are grateful for the sterling performance that MTN has chalked. We decided in 2018 to invest in MTN. I will say that so far, we have not been disappointed.
Of course, we wish it was more. I think it is a natural expectation and we wish it was more. But we know that you are committed to growing the company”.
Dr Ofori-Tenkorang noted that MTN Ghana had been on the growth trajectory, and they would stay with the telecom company.
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Responding to the call on SSNIT to acquire the remaining shares in MTN Ghana, he said: “When we have excess funds, we will deploy. I think myself and my deputies won’t find it difficult to convince the board of SSNIT to invest more in MTN Ghana. Because the track record of MTN shows”.
The SSNIT boss also assured MTN Ghana that SSNIT would remain the company’s faithful and strong partner to travel with on their journey of growth to deliver not only to shareholders but also to the development of the country.
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