MTN Uganda has reported an impressive 29.6% increase in profit after tax for the nine-month period ending September 30, 2024, reaching Shs 459.4 billion. This exceptional performance was fueled by the company’s strategic investments in its data and fintech services, which have become key drivers of growth as MTN continues to spearhead Uganda’s digital and financial inclusion efforts.
The company’s service revenue also saw strong growth, climbing by 20.1% to Shs 2.31 trillion, with notable contributions from both data services (up 30.1%) and fintech offerings (up 23.5%). MTN Uganda’s CEO, Sylvia Mulinge, highlighted the company’s strategic focus on enhancing operational efficiency and expanding its high-demand services as the main contributors to its success.
“We are thrilled with the results for this period, as they underscore MTN Uganda’s leadership role in driving digital transformation across the country,” Mulinge said. “Our targeted investments in data and financial services are delivering tangible benefits for millions of Ugandans, improving connectivity and providing access to mobile financial solutions.”
MTN Uganda’s subscriber base has also experienced solid growth, expanding by 13.3% to reach a total of 21.6 million. Data subscribers grew by 24.1%, and the number of fintech users rose by 13.2%, highlighting increasing demand for mobile data and mobile money services.
The company’s ongoing investments in its network infrastructure have played a key role in supporting this growth. Over the past nine months, MTN Uganda invested Shs 297.9 billion in expanding its network, particularly in upgrading 4G coverage and launching 5G services. The roll-out of 5G technology, in addition to improving 4G coverage from 83.7% to 87.9%, has significantly enhanced the quality and speed of MTN’s mobile and data services across the country.
“Our strategic focus on enhancing digital infrastructure is pivotal in delivering world-class connectivity and service quality to our customers,” Mulinge explained. “These investments are crucial not only for expanding network capacity but also for supporting Uganda’s growing digital economy.”
Data and Fintech Lead the Charge
Data services were a major contributor to MTN Uganda’s revenue growth, with the company reporting a 30.1% increase in data revenue. This growth was fueled by a 24.1% rise in the number of data subscribers, reaching a total of 9.3 million users. Additionally, there was a marked increase in data usage per customer, as well as a 48.5% surge in overall data traffic.
MTN Uganda’s strategy to promote smartphone adoption through device financing has also played a role in boosting data usage, with more Ugandans now able to access affordable smartphones and thus benefit from increased internet access.
On the fintech side, MTN Uganda’s mobile money services continued to show robust growth. The company reported a 23.5% increase in fintech revenue, driven by an increase in mobile money transactions. The total volume of transactions reached Shs 114.5 trillion, a 13.3% year-on-year rise. Active mobile money users also grew by 13.2%, bringing the total number of mobile money subscribers to 13.2 million.
“Both our data and fintech services have proven to be transformative for our customers,” said Mulinge. “We are seeing firsthand how digital connectivity and mobile financial services are helping Ugandans improve their livelihoods, access essential services, and participate more actively in the economy.”
Profitability and Dividends Reflect Strong Performance
MTN Uganda’s operating profits also showed significant growth, with EBITDA (earnings before interest, tax, depreciation, and amortization) rising by 22.3%. The company’s EBITDA margin increased to 51.7%, reflecting the benefits of operational efficiencies and a favorable macroeconomic environment.
This solid financial performance has allowed MTN Uganda to announce a second interim dividend of Shs 7.5 per share, rewarding shareholders as the company continues to expand and strengthen its market position.
Looking ahead, MTN Uganda is optimistic about sustaining its growth trajectory. The company has revised its service revenue growth target to the “upper-teen growth” range and aims to maintain an EBITDA margin above 50% as part of its Ambition 2025 strategy. The strategy focuses on furthering digital inclusion, expanding financial services, and investing in infrastructure to support future growth.
A Vision for the Future
As MTN Uganda looks to the future, the company remains committed to expanding its role in Uganda’s digital transformation.
“Our long-term vision is to continue empowering Ugandans through accessible and affordable digital services,” Mulinge concluded. “We are dedicated to enhancing lives, strengthening the economy, and creating new opportunities for growth and innovation.”
MTN Uganda’s continued success in the data and fintech sectors, along with its substantial investment in infrastructure, positions the company for ongoing leadership in Uganda’s rapidly evolving digital and financial landscapes. With a growing subscriber base, expanding network capabilities, and strong financial performance, MTN Uganda is poised to remain a key player in the country’s digital economy for years to come.
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