MTN Uganda’s profits have grown by 20% after meeting its tax oblligations in the first quarter of the current fiscal year (2022-23) to UGX. 120 billion, the company has announced.
The telecommunications giant also registered a profit before meeting a tax obligation of UGX. 168.7 billion between January and March, accounting for 17.4% increase compared to the same period in 2022.
Total revenue before interest, taxes, depreciation and amortization rose from 17.3% to UGX. 326 billion, facilitated by higher service revenue and continued operational effectiveness, delivered through the company’s expense efficiency programme and disciplined capital allocation.
MTN Uganda’s data and fintech service revenues rose from 25.7% and 20.7% respectively to UGX. 145 billion and UGX. 174.8 billion, while total service revenues shot up from 15.8% to UGX. 621 billion.
Also important to note, digital portfolio revenues climbed rapidly by 170.5% to UGX. 2.7 billion buttressed by heightened growth in the video streaming (aYoTV) and the content value added services portfolio, aided by ayoba app digital subscriber growth, which registered 1.2 million subscribers.
MTN Uganda which is a subsidiary of MTN Group in South Africa also registered a surge in Mobile Money (MOMO) merchants, which more than doubled to 268,000.
Ms. Sylvia Mulinge, the CEO MTN Uganda said the company launched a partnership with Huawei Technologies to tailor its digital infrastructure to the 5G cable network, in order to meet the ever changing customer needs in an innovative manner and deliver sustainable growth.
“We are also investing in our network in preparation for 5G to address our customers’ requirements and support sustained growth. In line with our 5G transition, MTN Uganda launched a partnership with Huawei Technologies to align our infrastructure towards a cloud-native 5G Capable Core network,” Ms. Mulinge remarked.
She added that the intervention will enable a future-oriented network with greater service agility, innovation for both consumer and industrial verticals, while focusing on improved operational efficiency.
MTN Uganda has been at the forefront of digitalization of Uganda’s economy through initiatives like e-commerce, e-banking aimed at facilitating convenient and fast business transactions, aimed at offering innovative solutions to its customers’ needs and driving Uganda’s fast economic growth.
“We are focused on scaling the adoption of payments and e-commerce in line with digitization of the economy, driving the adoption of Banktech products particularly loans and savings to support individuals and micro businesses as well as refining our Remittance strategy to increase flows from our regional and global partners,” Ms. Mulinge added.
Listed on the Uganda Securities Exchange (USE) in 2021 with considerable shares held by the local population, MTN Uganda registered 17.8 million mobile subscribers, 10.9 million fintech subscribers and 6.7 million data subscribers as of March 30th, 2023.
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