What you need to know:
- MTN Uganda saw a 24% increase in net profit for the first three months ending in March, reaching Shs150 billion.
- MTN Uganda maintains its medium-term guidance, aiming for mid-teen service revenue growth, stable EBITDA margins above 50%, and consistent capex intensity at mid-teen levels to support future growth.
MTN Uganda saw a 24% increase in net profit for the first three months ending in March, reaching Shs150 billion. This growth was primarily fueled by robust performance across its voice, data, and fintech business segments.
Total revenue for the company climbed by 19.5% to Shs750.5 billion compared to the previous year, while profit after tax surged by 24.4% to Shs150 billion. Service revenue experienced a similar upward trend, rising by 19.4% to Shs741.4 billion, driven by substantial growth in voice (up 15.5%), data (22.4%), and fintech (23.5%) revenues.
Earnings before interest, tax, depreciation, and amortization (EBITDA) increased by 19.6% to Shs390.4 billion, with a stable EBITDA margin of 52.0%. Capital expenditure (capex) also rose by 27.9% to Shs122.0 billion.
Sylvia Mulinge, the CEO of MTN Uganda, expressed satisfaction with the company’s performance amidst challenging macroeconomic conditions. She emphasized strong operational and strategic execution, surpassing medium-term targets of mid-teens revenue growth and margin stability.
Despite a decrease in average year-on-year inflation to 3.2%, the local currency depreciated by 2.7% against the US dollar in the quarter. However, MTN Uganda continued to demonstrate commercial strength, with a 12.0% increase in subscribers to 19.9 million.
To bolster connectivity, the company invested Shs122.0 billion in strategic network enhancements, particularly in 4G LTE and fiber deployment. Smartphone penetration rose to 40.6%, facilitated by device financing partnerships.
Looking ahead, Mulinge outlined key commercial strategies focusing on customer acquisition and sustaining voice revenue growth. Data management strategies will be intensified to drive engagement and usage, supported by ongoing investment in network infrastructure.
The company aims to enhance financial inclusion through partnerships with Mastercard and expand its service offering. Additionally, efforts to meet localisation requirements and broaden the shareholder base are underway.
MTN Uganda maintains its medium-term guidance, aiming for mid-teen service revenue growth, stable EBITDA margins above 50%, and consistent capex intensity at mid-teen levels to support future growth.
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