MTN Uganda has introduced a big 29.7% improve in internet revenue to Shs 295.7 billion for the half-year ended June 2024, pushed by strong progress in voice, information, and fintech providers.
The telecom firm’s voice revenues rose by 15.1% to Shs 626.7 billion, whereas information and fintech providers noticed spectacular will increase of 28.6% and 23.5%, reaching Shs 373.3 billion and Shs 442.3 billion respectively throughout the identical interval.
Overall, MTN Uganda’s service income surged by 20.4% to Shs 1.5 trillion, supported by a 14.6% progress in cell subscriber numbers, which now stands at 20.7 million.
Earnings earlier than curiosity, tax, depreciation, and amortization (EBITDA) grew by 22.4% to Shs 784.7 billion. In mild of this efficiency, the corporate has proposed an interim dividend payout of Shs 6.6 per share, equal to Shs 147.8 billion, to be paid on September 20.
“MTN Uganda’s efficiency within the first half of the yr continued on a optimistic development, supported by the general momentum in financial progress,” mentioned MTN Uganda CEO Sylvia Mulinge.
“The Ugandan financial system grew by 6.0% for the 2023/24 monetary yr with macro-economic indicators trending favorably within the six-month interval.”
Mulinge highlighted the corporate’s funding of Shs 219.1 billion to reinforce the standard, capability, and resilience of the MTN community, with a deal with 4G and 5G applied sciences. The 4G LTE inhabitants protection elevated to 87.8%, up 4.4 proportion factors, whereas the 5G rollout prolonged to 538 strategic websites, reaching full protection of the capital, Kampala.
“Our 2G and 3G inhabitants protection additionally rose to 98.9% (+0.5pp) and 93.2% (+0.8pp) respectively as we prolonged connectivity throughout the nation to make sure that all Ugandans get pleasure from the advantages of a contemporary related life,” she mentioned.
In the fintech area, Mulinge famous that MTN’s funding up to now six months was geared in direction of advancing the ecosystem with a deal with enhancing appreciation of its superior providers and increasing core providers.
“During Q1, we addressed our clients’ credit score necessities by establishing a complete mortgage suite, Wesotinge, in partnership with 5 monetary establishments to satisfy each brief and long-term liquidity wants,” she mentioned. The firm additionally launched a short-term credit score facility, Merchant Xtra Stock, and elevated the variety of cashpoints for agent top-ups to cut back float gaps, leading to a 25.2% year-on-year improve in transaction volumes to 2.0 billion.
Looking forward, Chief Finance Officer, Andrew Bugembe reaffirmed the corporate’s medium-term steerage framework of delivering mid-teen service income progress, sustaining secure EBITDA margins above 50%, and preserving capital expenditure (excluding leases) depth at mid-teen ranges.
“Leveraging on our community funding, we decide to ship dependable and inexpensive voice and information providers to empower our loyal buyer base,” he mentioned.
“To maintain our business momentum within the second half, we’ll proceed to companion, innovate, and supply options to satisfy an ever-evolving market as expertise advances.”
Bugembe mentioned investments, notably in 5G and 4G LTE, ought to improve buyer expertise and maintain the momentum achieved.
Richard Yego, Managing Director of MTN Mobile Money Uganda Ltd, MTN Uganda’s fintech arm, mentioned the corporate would proceed to deal with enhancing liquidity necessities for its retailers and brokers in addition to solutioning for the shoppers to encourage cashless transactions
He mentioned the Bank of Uganda’s directive for obligatory verification of consumers conducting cell cash transactions above Shs 1 million has not negatively impacted the fintech providers.
