In a financial feat that can only be described as nothing short of spectacular, MTN, Uganda’s telecommunications juggernaut, has reported a jaw-dropping 21.1% surge in its third-quarter profit after tax.
This meteoric rise, catapulting the company’s profit after tax to a staggering Shs 354.4 billion, up from Shs 292.6 billion just a year ago, is nothing short of a testament to MTN’s unassailable dominance in the market.
Fueling this financial rocket has been an ever-expanding customer base, coupled with an insatiable demand for data and fintech services. Service revenue surged concurrently by a formidable 15.2%, hitting a stratospheric Shs 1.9 trillion.
Such astronomical numbers have prompted the board to approve a second interim dividend of Shs 6.0 per share, a significant uptick from the previous year’s Shs 5.4, leaving shareholders in euphoric anticipation.
In a statement that echoed triumph, MTN Uganda CEO, Sylvia Mulinge, declared, “MTN Uganda maintained a positive growth momentum in the first nine months of 2023.” This success, she attributed to “solid commercial execution” and the fortuitous alignment with an improved macroeconomic environment.
The company’s relentless investment in customer-centricity was highlighted, with over 360 additional service points established to ensure a best-in-class customer experience.
As if this were not enough, inflation in the period took a dramatic nosedive, averaging a mere 3.3% compared to a lofty 9.0% in the same period the previous year.
The consequential reduction in food and imported inflation provided the backdrop for a significant reduction in the key lending rate, down by a whopping 50 basis points to a tantalizing 9.5%. The stability of the local currency was further buttressed by a surge in oil-driven foreign direct investment.
Data revenue, the bedrock of modern telecommunications, experienced a steady climb, expanding by a formidable 22.0%. This ascent was propelled by meticulous enhancements in network quality and data value packages.
The number of active data users soared by a staggering 23.0%, an impressive tally of 7.5 million, while data usage per active user witnessed a commendable 20% surge.
MTN’s investments in 4G and the groundbreaking introduction of 5G technology delivered a seismic shift in user experience. Data traffic skyrocketed by an astounding 51.0%, with a significant portion carried on the 4G network, a testament to the company’s unwavering commitment to technological advancement.
Smartphone adoption, an indispensable facet of the modern digital landscape, saw a meteoric rise, with penetration reaching an astonishing 36.6%. This marked a notable increase of 3.9 percentage points, underlining the resounding success of initiatives like the MTN Kabode flagship product and strategic partnerships that offered improved pricing and value propositions.
But the crowning jewel in MTN’s financial crown was the explosive growth in fintech revenue, surging by an awe-inspiring 18.1%. Basic revenues from peer-to-peer (P2P) and money transfers experienced a meteoric expansion, a testament to the widespread acceptance of mobile money.
The number of fintech subscribers grew by a formidable 9.7%, a formidable 11.6 million, with a significant surge in the adoption of the MoMo Pay platform.
In a crescendo of financial wizardry, digital revenue experienced a mind-boggling growth of 130.0%. This surge was driven by an increase in content value-added services and enterprise digital solutions that leveraged open Application Programming Interfaces (APIs).
Customers harnessed MTN’s network assets to elevate their products and services, further cementing the company’s profitability.
Looking ahead, MTN remains poised for future growth, aligning seamlessly with Uganda’s robust economy, which demonstrates resilience and anticipates strong growth.
With the central bank projecting economic growth of 5.3% for the fiscal year 2022/2023, the path ahead is paved with promise. MTN’s focus on new growth segments, including home broadband, enterprise, and digital, reflects a company firmly in tune with the dynamic demands of the digital age.
As the year draws to a close, Sylvia Mulinge affirmed, “Our focus remains on maintaining the growth momentum of our overall portfolio.” With rigorous customer acquisition strategies and initiatives around voice propositions, MTN aims to finish the year on an emphatic note.
On the data front, optimization of the 4G and 5G network, coupled with increased home and business activations, forms the cornerstone of their strategy. It is a vision underpinned by a value-based capital allocation strategy, ensuring a balanced and fortified financial position.
In the annals of Uganda’s telecommunications history, this financial surge by MTN will be remembered as a milestone of monumental proportions.
As the company charts its course towards an even more prosperous future, it leaves an indelible mark on the landscape of connectivity and innovation.
With its coffers overflowing and its vision laser-focused, MTN stands as a beacon of success in the realm of telecommunications.
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