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This strong performance allowed MTN Uganda to declare a second interim dividend of Shs 7.5 per share
Kampala, Uganda | THE INDEPENDENT | MTN Uganda has recorded a significant 29.6% increase in profit after tax, reaching Shs 459.4 billion for the nine months ending September 30, 2024.
The robust growth is attributed to the strong performance in the company’s data and fintech segments, aligned with its strategic commitment to digital and financial inclusion across Uganda.
Service revenue rose by 20.1% year-on-year to Shs 2.31 trillion, with notable gains in data services, up 30.1%, and fintech services, up 23.5%. Sylvia Mulinge, CEO of MTN Uganda, highlighted the company’s focused efforts on high-demand services and operational efficiencies as central to this growth.
“Our substantial profit and revenue growth underscore MTN Uganda’s leading role in Uganda’s digital transformation,” Mulinge stated.
“By investing in our data and fintech services and enhancing network quality, we have broadened access to digital and financial services for millions of Ugandans while improving profitability.”
The company’s subscriber base expanded by 13.3% to 21.6 million, supported by a 24.1% growth in data users and a 13.2% increase in fintech subscribers. MTN Uganda’s continued investments in 4G and the launch of 5G services have provided customers with faster, more reliable connectivity, fueling these gains.
MTN Uganda dedicated Shs 297.9 billion in capital expenditures to broaden its network coverage and improve service quality. This investment enabled the company to expand 4G coverage from 83.7% to 87.9% and roll out 5G services. Additionally, MTN extended its fiber network in Kampala and key regions upcountry, enhancing connectivity across the country.
“Our digital infrastructure investments lay the foundation for a superior customer experience and Uganda’s digital economy,” noted Mulinge. “Expanding 4G and launching 5G empower Ugandans with essential connectivity, driving economic growth and innovation.”
Data and fintech services lead growth
MTN’s data revenue saw a 30.1% boost, propelled by a 24.1% rise in data subscribers to 9.3 million and increased data usage per customer. A device financing strategy also spurred smartphone adoption, resulting in a 48.5% increase in data traffic.
“Data and fintech are pivotal to MTN Uganda’s growth, and we’re thrilled to see the positive impact on our subscribers,” Mulinge said. “Our focus on making mobile and digital services accessible is advancing connectivity and financial empowerment across Uganda.”
The fintech segment also performed strongly, with a 23.5% increase in revenue, driven by rising mobile money usage and transaction volumes. Mobile money transactions reached Shs 114.5 trillion, up 13.3%, while active mobile money users grew by 13.2% to 13.2 million.
Profitability and dividend growth
MTN Uganda’s EBITDA grew by 22.3%, with the EBITDA margin reaching 51.7%, supported by a favorable macroeconomic climate and streamlined operations. This strong performance allowed MTN Uganda to declare a second interim dividend of Shs 7.5 per share.
Looking forward, MTN Uganda remains focused on its Ambition 2025 strategy, which emphasizes digital inclusion, financial services expansion, and infrastructure investment. The company raised its service revenue target to “upper-teen growth” and expects to sustain an EBITDA margin above 50%, underscoring its market leadership.
“As we look to the future, MTN Uganda is committed to maintaining our growth while advancing our mission to transform lives through digital and financial inclusion,” Mulinge added. “Our success stems from our dedication to our customers, employees, and stakeholders, and we are optimistic about the opportunities ahead.”
