MTN Uganda’s net profit jumps to shs295.7 billion

Kampala | MTN Uganda’s net profit increased by 29.7% to shs 295.7 billion for the half-year ending June 2024. 

This growth is attributed to strong performance in voice, data, and fintech services.

Voice revenues increased by 15.1% (shs626.7 billion), while data and fintech services increased by 28.6% and 23.5%, respectively, to shs373.3 billion and shs442.3 billion.

Overall, service revenue increased by 20.4% (shs 1.5 trillion), boosted by a 14.6% increase in mobile subscribers to 20.7 million. Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 22.4% to shs 784.7 billion.

The company has proposed an interim dividend of shs 6.6 per share, totalling shs 147.8 billion, due on September 20.

MTN Uganda CEO Sylvia Mulinge

commented, “MTN Uganda’s performance in the first half of the year continued to reflect positive momentum, supported by favorable economic conditions.”

She noted that the Ugandan economy grew by 6.0% in the fiscal year 2023/24, with positive macroeconomic trends throughout the period.

Mulinge announced an investment of shs219.1 billion to improve the quality, capacity, and resilience of the MTN network, with a focus on 4G and 5G technologies.

4G LTE coverage increased to 87.8%, up 4.4 percentage points, while 5G was expanded to 538 strategic sites, completely covering Kampala. Coverage for 2G and 3G increased to 98.9% and 93.2%, respectively.

MTN has focused on advancing its fintech ecosystem by introducing new credit facilities such as Wesotinge, which was developed in collaboration with five financial institutions, and Merchant Xtra Stock, a short-term credit facility.

The company also increased the number of cashpoints available for agent top-ups, resulting in a 25.2% year-over-year increase in transaction volumes to 2.0 billion.

Looking ahead, Chief Financial Officer Andrew Bugembe reiterated the company’s medium-term objectives, which include mid-term service revenue growth, stable EBITDA margins above 50%, and maintaining capital expenditure intensity at mid-term levels.

 “We are committed to delivering reliable and affordable voice and data services through our network investments,” he stated, adding, “To sustain our commercial momentum in the second half, we will continue to innovate and provide solutions to meet a dynamic market.”

Richard Yego, Managing Director of MTN Mobile Money Uganda Ltd, stated that the company will continue to focus on liquidity needs for merchants and agents, as well as promoting cashless transactions.

He stated that the Bank of Uganda’s directive requiring mandatory customer verification for transactions exceeding shs1 million had no negative impact on fintech services.