Nimed Leaderboard

Focus on Data and Mobile Money to Accelerate Growth of MTNGH - SIC Brokerage

We revise our HOLD recommendation for MTNGH to a BUY while revising our target price to GH¢1.10 from the current price of GH¢0.85 per share, representing an upside of 29.41%. We’re bullish on the economic recovery and the long term growth of MTNGH as it focuses more on data and mobile money.

Results Summary

Service revenue was up by 16.4% to GH¢5,992 million, led by an 8.1% YoY growth in voice revenue, 21.3% YoY growth in data revenue and a 32.2% YoY growth in mobile money revenue. Contribution to topline continued its shift to data (29.6%) and mobile money (21.2%). Opex cuts and digital distribution efficiencies led to an EIBTDA margin of 52.7%, resulting in a 38.4% YoY growth in profit after tax.

MTNGH continued to invest heavily in its business. Capex increased by 33.9% YoY, resulting in 11.89% growth in fixed assets. Higher P2P transactions led to a 92.61% YoY jump in mobile money float from GH¢3,405 million to GH¢6,559 million. The telco also increased its reliance on debt, increasing its long term borrowings by 147.13%.

Our recommendation is based on the following key investment highlights:

• Focus on long term growth. MTNGH’s continued capex (33.9% YoY growth) especially in 4G, position it for long term growth. The telco invested GH¢1,489 million in network capacity and infrastructure expansion which helped support a 105% growth in data traffic and reach 1,875 total 4G sites nationwide (71.7% 4G population coverage). Core capex intensity was 14.2% from 17.9% in FY2019.

• Impressive earnings growth and attractive dividend yield. PAT has grown by a CAGR of 28.93% since 2013. This impressive performance coupled with a high dividend payout ratio has led to high dividend yields (12.5% in FY2020). MTNGH paid a dividend of GH¢0.08 (GH¢0.03 interim dividend and GH¢0.05 final dividend), a payout of 70.5% of PAT and a 33.3% YoY increase.

• Attractive market. Digital acceleration as Ghanaians come online (Smartphone growth of 32.5% YoY to 10.5 million smartphones).


MTNGH trades at 2.81x ‘21e P/B and 6.41x Fwd P/E. MTNGH’s dividend yield stands at 12.5% (70% PAT payout). Our GH¢1.10 twelve month target is derived via averages of the dividend model, comps, historical book value, DCF and the 52 week high and low.


Potential catalysts include widespread Covid-19 vaccination to lower the risk of another wave.

Downside risks to MTN’s long term growth include the spinoff of the telco’s mobile money arm. While such an event will likely bring a one-time windfall to investors, it will prevent investors from benefitting from the impressive growth of the business. Also, Government’s entry into the telecom space through the acquisition of AirtelTigo increases the risk of competition and regulatory risks.

Disclosure: SIC Brokerage does and seeks to do business with companies covered in SIC Brokerage Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of SIC Brokerage Research. Investors should consider SIC Brokerage Research as only a single factor in making their investment decision. For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report.

Disclaimer: The data contained in this document is based on material we believe to be reliable; however, we do not represent that the data is accurate, current, complete, or error free. Assumptions, estimates and opinions contained in the document constitute our judgment as of the date of the material and is subject to change without notice. The document does not constitute investment advice and SIC Brokerage is not acting in a fiduciary capacity with respect to you or any other party. Before entering into any transaction or making any investment decision the recipient is strongly advised to seek their own independent advice in relation to any investment, financial, legal, tax, accounting or regulatory issues discussed herein. Further you should take steps to ensure that you fully understand appropriateness of the action in the light of your own objectives and circumstances. You should also consider seeking advice from your own advisers in making this or any other assessment. Analyses and opinions contained herein may be based on assumptions that if altered can change the analyses or opinions expressed.

Comments (19)
Invaste - 8 hours, 9 minutes, 53 seconds ago

PMID 34569185 Free PMC article purchase cialis One Japanese study reported nine fold and sixteen fold increases in growth hormone 30 and 60 minutes respectively after intravenous administration of 2

touhTousy - 6 days, 12 hours, 25 minutes, 19 seconds ago

We found that gentamicin causes a significant inhibition of protein synthesis in all hair cells examined where can you buy viagra Seizure was reported in approximately one third of all cases

Prervitty - 7 days, 21 hours, 20 minutes, 43 seconds ago

To our knowledge, no studies have analyzed E signaling in solid breast tumors or after long term hormone treatments under conditions that resemble physiological and clinical states metformin and viagra 9 percent and 20 percent or above

Towswaddy - 10 days, 5 hours, 12 minutes, 46 seconds ago

Difficulty conceiving is also something we don t often talk about, either priligy tablets over the counter

touhTousy - 10 days, 14 hours, 40 minutes, 34 seconds ago

Depending on your severity of hot flashes, a physician may recommend hormone replacement therapy HRT tamoxifen generic Epidemiology Pharmacology Efficacy Precautions Indications Adverse Effects Conditions Unrelated to Depo Provera use Benefits Dosing Protocol Switching between contraceptives References Extra Related Bing Images Extra Related Studies Extra UMLS Ontology Extra Navigation Tree

creartesE - 11 days, 7 hours, 16 minutes, 11 seconds ago

PMID 19725275 buy cialis online with a prescription Beim Spiel um echtes Geld ist in Online Roulette Casinos eines besonders wichtig ein hohes MaГџ an Sicherheit und Spielerschutz

RexUttemi - 13 days, 22 hours, 29 minutes, 24 seconds ago

This ability of Ang 1 7 to prevent production of TGF ОІ1 as well as decrease TGF ОІ1 stimulated ERK1 2 activation and fibronectin synthesis indicates that the heptapeptide is an antagonist of TGF ОІ1 mediated fibrosis in breast cancer buy stromectol ivermectin 1M PBS, followed by 4 paraformaldehyde PFA in PBS 10ml min flow rate

NageanaeS - 1 month, 24 days, 42 minutes, 17 seconds ago

accutane for mild acne efavirenz increases levels of tamsulosin by affecting hepatic intestinal enzyme CYP3A4 metabolism

trawlelry - 1 month, 24 days, 17 hours, 26 minutes, 19 seconds ago

It is aptly titled viagra without a prescription Upon return to room air, PIF returned to baseline at an initial faster rate in male eNOS mice than male WT mice Panels A and C and returned to baseline at a similar initial rate in eNOS and WT female mice Panels B and D

Platela - 1 month, 25 days, 15 hours, 8 minutes, 5 seconds ago

bo levitra 20, 117 120 2009

Timothyamoms - 2 months, 14 days, 21 hours, 47 minutes, 40 seconds ago ed medications list

Encasia - 2 months, 17 days, 3 hours, 51 minutes, 58 seconds ago

lasix for cats To address the challenge of a constantly changing environment, health care organizations should embrace an evolutionary approach, rather than espouse a sudden dramatic shift, by adopting a learning organizational culture and building on existing infrastructure 65

WAIBUMS - 2 months, 20 days, 21 hours, 8 minutes, 40 seconds ago

is doxycycline good for sinus infection The high prices of many new drugs also means that inappropriate use for patients who gain little or no benefit from the treatment creates a high opportunity cost in terms of health losses for other patients, for whom the resources could be better used

Zelmict - 2 months, 22 days, 15 hours, 45 minutes, 42 seconds ago

dose clomid In the N HER2 subgroup, BCI H I High patients remained predictive of benefit from extended tamoxifen 9

coessot - 2 months, 27 days, 18 hours, 22 minutes, 50 seconds ago

lansoprazole salbutamol gotas para nebulizar dosis Video footage shows Davis checking the balance and making two withdrawals from White s account for 611 nolvadex buy

Rodsemore - 3 months, 9 days, 5 hours, 58 minutes, 44 seconds ago

buy stromectol canada Although multiple pRB loss gene signatures have been defined and shown to accurately predict pRB loss across cancer types 5, 16, the addition of gene expression threshold changes may improve the success in defining pRB status in tumors

Arlette - 3 months, 20 days, 42 minutes, 49 seconds ago

Suclige - 5 months, 21 days, 22 hours, 33 minutes, 12 seconds ago

stromectol 12mg cialis not specials regex

ALBUSSY - 6 months, 10 days, 19 hours, 58 minutes, 33 seconds ago

Propecia Discount Coupons tadalafil cialis from india