The Independent Uganda: You get the Truth we Pay the Price
The company’s service revenue surged by 20.4% to Shs 1.5 trillion, supported by an increase in mobile subscriber numbers, which now stand at 20.7 million.
Kampala, Uganda | THE INDEPENDENT | MTN Uganda is set to pay shareholders an interim dividend of Shs 6.6 per share, amounting to Shs 147.8 billion, following a strong financial performance in the first half of 2024.
The dividend payout, scheduled for September 20, comes on the back of a remarkable 29.7% increase in net profit, which reached Shs 295.7 billion, driven by robust growth across voice, data, and fintech services.
MTN Uganda’s voice revenues rose by 15.1% to Shs 626.7 billion, while data and fintech services experienced impressive growth of 28.6% and 23.5%, reaching Shs 373.3 billion and Shs 442.3 billion, respectively.
Overall, the company’s service revenue surged by 20.4% to Shs 1.5 trillion, supported by a 14.6% increase in mobile subscriber numbers, which now stand at 20.7 million.
Earnings before interest, tax, depreciation, and amortization (EBITDA) also saw significant growth, rising by 22.4% to Shs 784.7 billion. This positive financial trajectory reflects MTN Uganda’s continued momentum in aligning with the broader economic growth, as the Ugandan economy expanded by 6.0% during the 2023/24 financial year.
MTN Uganda CEO Sylvia Mulinge attributed the company’s strong performance to strategic investments aimed at enhancing network quality, capacity, and resilience, particularly in 4G and 5G technologies.
She said the company invested Shs 219.1 billion in network improvements, resulting in a 4.4 percentage point increase in 4G LTE population coverage to 87.8% and an expanded 5G rollout to 538 strategic sites, achieving full coverage of Kampala.
“Our 2G and 3G population coverage also rose to 98.9% and 93.2% respectively, as we continue to extend connectivity across Uganda to ensure that all citizens enjoy the benefits of a modern connected life,” Mulinge said.
In the fintech space, Mulinge highlighted MTN’s efforts to advance the ecosystem by enhancing appreciation of its advanced services and expanding core services. Notably, the company introduced a comprehensive loan suite, Wesotinge, in partnership with five financial institutions to address customers’ short- and long-term liquidity needs. Additionally, the introduction of a short-term credit facility, Merchant Xtra Stock, and an increase in cashpoints for agent top-ups led to a 25.2% year-on-year increase in transaction volumes to 2.0 billion.
Future outlook
Looking ahead, MTN Uganda Chief Finance Officer Andrew Bugembe reaffirmed the company’s commitment to its medium-term guidance framework, focusing on delivering mid-teen service revenue growth, maintaining stable EBITDA margins above 50%, and managing capital expenditure intensity at mid-teen levels.
“Leveraging our network investments, we are dedicated to providing reliable and affordable voice and data services to empower our loyal customer base,” Bugembe said. He emphasized that the continued investment, particularly in 5G and 4G LTE, will enhance customer experience and sustain the momentum achieved in the first half of the year.
Richard Yego, Managing Director of MTN Mobile Money Uganda Ltd, added that the company will continue to prioritize liquidity requirements for its merchants and agents while developing solutions to encourage cashless transactions.
He also noted that 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.
