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MTN profits top UGX460 billion in 9 months

Peter 8th Nov, 2024 Telecommunication Pedson Mumbere
MTN profits top UGX460 billion in 9 months

MTN's data revenue has seen a growth of 30%, driven by the rising number of data subscribers. COURTESY PHOTO


MTN Uganda has announced a 29.6% year-on-year increase in profit after tax, totaling Shs 459.4 billion for the nine months ending September 30, 2024.

The growth was largely attributed to exceptional performance in the telecom’s data and fintech segments, aligned with the company’s commitment to digital and financial inclusion in Uganda.

Service revenue grew by 20% year-on-year, reaching UGX2.31 trillion, with strong gains in data (up 30.1%) and fintech services (up 23.5%).

  • MTN Uganda CEO Sylvia Mulinge attributed this robust growth to the company’s strategic focus on expanding high-demand services while improving operational efficiencies.

“Our substantial growth in profit and service revenue highlights MTN Uganda’s role as a leader in Uganda’s digital transformation journey,” said Mulinge.

“By focusing on our data and fintech verticals and investing in network quality, we have managed to expand access to digital and financial services for millions of Ugandans, while also enhancing profitability.”

  • The company’s subscriber base expanded by 13.3% to 21.6 million, with data subscribers growing by 24.1% and fintech users by 13.2%. This growth was supported by MTN Uganda’s sustained investment in 4G and the launch of 5G services, providing customers with faster, more reliable connectivity.

MTN Uganda invested UGX298 billion in capital expenditure, primarily to expand its network footprint and improve service quality. This investment supported the rollout of 5G and increased 4G coverage from 83.7% to 87.9%, while also facilitating the extension of the fiber network across the Kampala metropolitan area and key upcountry regions.

“Our investment in digital infrastructure is foundational to delivering a superior customer experience and driving Uganda’s digital economy,” noted Mulinge. “By expanding 4G and launching 5G, we are empowering Ugandans with faster and more reliable connectivity, essential for economic growth and innovation.”

The company’s data revenue growth of 30.1% was driven by a 24.1% increase in data subscribers rising to 9.3 million and a rise in data usage per customer. The company’s device financing strategy also helped increase smartphone penetration, contributing to a 48.5% rise in data traffic.

“Data and fintech are key drivers of MTN Uganda’s growth, and we’re thrilled to see how these services are positively impacting our subscribers,” said Mulinge. “By making mobile and digital services accessible and affordable, we’re enhancing connectivity and enabling financial empowerment across Uganda.”

  • MTN’s fintech revenue increased by 23.5%, driven by rising mobile money adoption and transaction volumes. Total mobile money transactions reached Shs 114.5 trillion, a 13.3% increase from last year, as the number of active mobile money subscribers also grew by 13.2% to 13.2 million.
  • EBITDA margin rose to 51.7%, benefiting from a favorable macroeconomic environment and operational efficiencies. This strong financial performance allowed MTN Uganda to declare a second interim dividend of UGX7.5 per share, amounting to a payout of UGX168 billion.

The dividend is to be paid on December 16 to shareholders who will be on the books not later November 26, 2024.

However, investors who will buy MTN Uganda shares after November 21 would not be entitled to the second interim dividend for the period.

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