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MTN Uganda has announced a significant 29.7 percent increase in net profit to Shs 295.7 billion for the half-year ending June 2024, driven by robust voice, data, and fintech services growth.
The company’s voice revenues rose by 15.1percent to Shs 626.7 billion, while data and fintech services saw impressive increases of 28.6percent and 23.5percent, reaching Shs 373.3 billion and Shs 442.3 billion respectively during the same period. Overall, MTN Uganda’s service revenue surged by 20.4 per cent to Shs 1.5 trillion, supported by a 14.6 per cent growth in mobile subscriber numbers, now at 20.7 million. Earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 22.4 per cent to Shs 784.7 billion. Considering this performance, the company has proposed an interim dividend payout of Shs 6.6 per share, equivalent to Shs 147.8 billion, to be paid on September 20.
The Ugandan economy grew by 6.0 perc ent for the 2023/24 financial year with macro-economic indicators trending favorably in the six months. MTN Uganda’s performance in the first half of the year continued on a positive trend, supported by the overall momentum in economic growth, said MTN Uganda CEO Sylvia Mulinge. She highlighted the company’s investment of Shs 219.1 billion to enhance the quality, capacity, and resilience of the MTN network, with a focus on 4G and 5G technologies. The 4G LTE population coverage increased to 87.8 per cent, up 4.4 percentage points, while the 5G rollout extended to 538 strategic sites, achieving full coverage of the capital, Kampala.
2G and 3G population coverage also rose to 98.9percent (+0.5pp) and 93.2percent (+0.8pp) respectively as we extended connectivity across the country to ensure that all Ugandans enjoy the benefits of a modern connected life,” she said. In the fintech space, Mulinge noted that MTN’s investment in the past six months was geared towards advancing the ecosystem with a focus on enhancing appreciation of its advanced services and expanding core services.
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Richard Yego, Managing Director of MTN Mobile Money Uganda Ltd, MTN Uganda’s fintech arm, said the company would continue to focus on enhancing liquidity requirements for its merchants and agents as well as solutions for the customers to encourage cashless transactions. He said the Bank of Uganda’s directive for mandatory verification of customers conducting mobile money transactions above Shs 1 million has not negatively impacted the fintech services.
