MTN Uganda reports 29.6% profit surge in first nine months of 2024

MTN Uganda has announced a 29.6% rise in profit after tax, reaching Shs 459.4 billion for the first nine months of 2024. This growth is largely driven by the company’s strategic expansions in data and fintech services.

Service revenue climbed by 20.1% to Shs 2.31 trillion, underpinned by a 30.1% increase in data revenue and a 23.5% rise in fintech services. The subscriber base expanded by 13.3%, now totaling 21.6 million, with notable gains in both data and mobile money users.

CEO Sylvia Mulinge highlighted the company’s focus on enhancing digital and financial inclusion. “Our significant growth underscores MTN Uganda’s leadership in driving Uganda’s digital transformation,” she said. “By prioritising our data and fintech services and improving network quality, we’ve expanded access to crucial digital and financial services for millions of Ugandans.”

The company reported a 24.1% increase in data subscribers to 9.3 million and a 13.2% rise in fintech users. Continued investment in 4G and the rollout of 5G services have been key to this growth, offering faster and more reliable connectivity.

MTN Uganda invested Shs 297.9 billion in capital expenditure to enhance its network. This investment boosted 4G coverage from 83.7% to 87.9% and extended the fibre network across Kampala and other key regions.

“Our digital infrastructure investments are critical to providing a superior customer experience and supporting Uganda’s digital economy,” noted Mulinge. “By expanding 4G and launching 5G, we are facilitating faster and more reliable connectivity, essential for economic growth and innovation.”

Data and Fintech Services Propel Growth

Data revenue growth of 30.1% was driven by a rise in data subscribers and usage per customer. The company’s device financing strategy also increased smartphone penetration and data traffic by 48.5%.

“Data and fintech are central to MTN Uganda’s growth, and it’s rewarding to see the positive impact of these services on our subscribers,” said Mulinge. “Making mobile and digital services accessible and affordable enhances connectivity and enables financial empowerment across Uganda.”

Fintech revenue increased by 23.5%, with mobile money adoption and transaction volumes driving this growth. Total mobile money transactions reached Shs 114.5 trillion, with active mobile money subscribers growing by 13.2% to 13.2 million.

Enhanced Profitability and Dividend Declaration

MTN Uganda’s EBITDA grew by 22.3%, with the EBITDA margin improving to 51.7% due to operational efficiencies and a favourable macroeconomic environment. This strong financial performance enabled the company to declare a second interim dividend of Shs 7.5 per share.

Looking forward, MTN Uganda will continue to implement its Ambition 2025 strategy, focusing on digital inclusion, expanding financial services, and investing in infrastructure. The company has upgraded its service revenue target to “upper-teen growth” and aims to maintain an EBITDA margin above 50%.

“MTN Uganda remains committed to sustaining our growth momentum while fulfilling our mission of transforming lives through digital and financial inclusion,” Mulinge concluded. “Our success is driven by our dedication to our customers, employees, and stakeholders, and we are excited about the opportunities ahead.”