MTN Uganda has announced a 29.6% year-on-year increase in profit after tax, totaling Shs 459.4 billion for the nine months ending September 30, 2024.
The growth was largely attributed to exceptional performance in MTN Uganda’s data and fintech segments, aligned with the company’s commitment to digital and financial inclusion in Uganda.
Service revenue grew by 20.1% year-on-year, reaching Shs 2.31 trillion, with strong gains in data (up 30.1%) and fintech services (up 23.5%).
MTN Uganda’s CEO, Sylvia Mulinge, attributed this robust growth to the company’s strategic focus on expanding high-demand services while improving operational efficiencies.
“Our substantial growth in profit and service revenue highlights MTN Uganda’s role as a leader in Uganda’s digital transformation journey,” said Mulinge.
“By focusing on our data and fintech verticals and investing in network quality, we have managed to expand access to digital and financial services for millions of Ugandans, while also enhancing profitability.”
The company’s subscriber base expanded by 13.3% to 21.6 million, with data subscribers growing by 24.1% and fintech users by 13.2%. This growth was supported by MTN Uganda’s sustained investment in 4G and the launch of 5G services, providing customers with faster, more reliable connectivity.
MTN Uganda invested Shs 297.9 billion in capital expenditure, primarily to expand its network footprint and improve service quality. This investment supported the rollout of 5G and increased 4G coverage from 83.7% to 87.9%, while also facilitating the extension of the fiber network across the Kampala metropolitan area and key upcountry regions.
“Our investment in digital infrastructure is foundational to delivering a superior customer experience and driving Uganda’s digital economy,” noted Mulinge. “By expanding 4G and launching 5G, we are empowering Ugandans with faster and more reliable connectivity, essential for economic growth and innovation.”
Data and fintech Services
MTN Uganda’s data revenue growth of 30.1% was driven by a 24.1% increase in data subscribers to 9.3 million and a rise in data usage per customer. The company’s device financing strategy also helped increase smartphone penetration, contributing to a 48.5% rise in data traffic.
“Data and fintech are key drivers of MTN Uganda’s growth, and we’re thrilled to see how these services are positively impacting our subscribers,” said Mulinge. “By making mobile and digital services accessible and affordable, we’re enhancing connectivity and enabling financial empowerment across Uganda.”
MTN’s fintech revenue increased by 23.5%, driven by rising mobile money adoption and transaction volumes. Total mobile money transactions reached Shs 114.5 trillion, a 13.3% increase from last year, as the number of active mobile money subscribers also grew by 13.2% to 13.2 million.
Enhanced Profitability and Dividends
MTN Uganda’s EBITDA increased by 22.3%, with the EBITDA margin rising to 51.7%, benefiting from a favorable macroeconomic environment and operational efficiencies. This strong financial performance allowed MTN Uganda to declare a second interim dividend of Shs 7.5 per share.
Looking ahead, MTN Uganda will continue to focus on executing its Ambition 2025 strategy, aimed at strengthening digital inclusion, expanding financial services, and investing in infrastructure to support growth.
The company upgraded its service revenue target to “upper-teen growth” and expects to maintain an EBITDA margin above 50%, reinforcing its market leadership and growth potential.
“As we look toward the future, MTN Uganda is committed to sustaining our growth momentum while staying true to our mission of transforming lives through digital and financial inclusion,” said Mulinge. “Our success is driven by our dedication to our customers, employees, and stakeholders, and we are excited about the opportunities that lie ahead.”
