MTN Ghana (trading as Scancom PLC on the Ghana Stock Exchange) shareholders are set to enjoy massive returns as the telecom giant declared a record dividend for the 2024 financial year.
The company’s board announced and its shareholders last week approved a total dividend of GHS0.305 per share, marking a 35.6 per cent increase from the previous year.
With an eight per cent withholding tax on dividends in Ghana, shareholders will receive net payments after tax deductions.
According to GraphicOnline’s analysis of MTN’s annual report, among the biggest beneficiaries are the third highest shareholder in MTN Ghana, the Social Security and National Insurance Trust (SSNIT), Scancom PLC Board Chairman Ishmael Yamson, and Director Ebenezer Asante ( first Ghanaian to head MTN Ghana and currently the Vice President of MTN Group’s West and Central Africa (WECA) Region), whose shareholdings will earn them substantial payouts.
The majority shareholder, Investcom Consortium Holdings S.A., is also set to receive a massive windfall following this declaration.
The Social Security and National Insurance Trust (SSNIT), which owns 203,825,694 shares, will receive an interim dividend of GHS13,248,670.11 and a final dividend of GH₵48,918,166.56, bringing the total dividend payout to GH₵62,166,836.67. After the eight percent withholding tax deduction of GH₵4,973,346.93, SSNIT will take home a net dividend of GH₵57,193,489.74.
The Board Chairman Ishmael Yamson, who holds 834,344 shares, will receive an interim dividend of GH₵54,232.36 and a final dividend of GHS200,242.56, making a total dividend payout of GH₵254,474.92. After the deduction of GHS20,357.99 in withholding tax, Yamson’s net earnings from the dividend will be GH₵234,116.93.
For Ebenezer Asante, who owns 8,000,100 shares, the interim dividend payout stands at GH₵520,006.50, while the final dividend amounts to GH₵1,920,024.00, bringing his total dividend earnings to GH₵2,440,030.50. With a withholding tax deduction of GH₵195,202.44, Asante will take home a net dividend of GH₵2,244,828.06.
The majority shareholder, Investcom Consortium Holdings S.A., which holds 9,535,213,597 shares, is set to receive the largest dividend payout. The interim dividend alone amounts to GH₵619,788,883.80, while the final dividend stands at GH₵2,288,451,263.28, bringing the total payout before tax to a staggering GH₵2,908,240,147.08. With the eight percent withholding tax amounting to GH₵232,659,211.77, Investcom will receive a net dividend of GH₵2,675,580,935.31.
The increase in dividend payouts follows MTN Ghana’s strong financial performance in 2024, with revenue reaching GH₵17.9 billion.
The company’s dividend payout represents 80.26 per cent of profit after tax, reinforcing its commitment to rewarding shareholders. Despite reducing its stake, Investcom Consortium Holdings S.A. remains the dominant shareholder, while SSNIT has slightly increased its stake, reflecting growing local interest in the telecom giant.
At the AGM, MTN Ghana announced a final dividend payment of 24 pesewas per share, subject to shareholder approval, with disbursement set for April 16, 2025. The company’s total dividend for 2024 stands at 30.5 pesewas per share, translating to GH₵4.0 billion, which represents 80 per cent of the company’s profit after tax of GH₵5.0 billion. This marks a 35.6 per cent increase in dividend per share compared to 2023.
MTN Ghana continues to hold a strong position in Ghana’s stock market, offering significant returns to both institutional and individual investors.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
