Astonishing net profit of Shs. 228 billion was reported by MTN Uganda, a pioneering telecoms company, in the first half of 2023. This achievement was made possible by judicious investments in emerging fintech and data-driven technologies.
The company’s chief executive officer, Sylvia Mulinge, and its executive director, Andrew Bugembe, revealed the encouraging developments on August 4 during a press briefing in Kampala.
According to Mulinge, “We are pleased with the outcomes, and I am pleased with the work being done by our team in terms of product and service innovations in line with our customers’ needs.”
According to the statistics, the voice, data, and fintech sectors all enjoyed strong growth, driving a 15.0% increase in service revenue.
Voice income increased to Sh544 billion in the first half of this year from Sh497 billion in the same period last year, a 9.4% increase.
A growing consumer base was the primary driver of this growth. Due to advancements in customer value management and competition, the telco’s net subscriber additions for H1 2023 climbed by 910,000 customers, reaching 18.1 million.
The company’s net promoter score increased, suggesting higher network quality, product innovation, and brand appreciation. This number measures consumer likelihood to recommend MTN services. By switching 2G users to 3G, the business reduced congestion during this time.
Data revenue increased by 22.1% to Shs290 billion, while the number of active data customers increased by 21.4% to 6.9 million. This achievement was credited to initiatives to promote smartphone adoption and enhanced products for small and medium-sized businesses.
Revenue from home broadband increased by 50.4%, following the trend of remote work. Payment and international remittance growth were the main drivers of the 18.6% increase in fintech revenue, which was generated by MTN MOMO Pay and related services, to Shs358 billion.
The board suggested a first interim dividend of Sh5.6 per share, while the company’s tax contribution to the government increased by 19%. Earnings per share increased from Shs8.6 in H1 2022 to Shs10.2 in H1 2023, an increase of 18%.
Second Half Approach
The business anticipates consistent growth in line with the Bank of Uganda’s predictions for economic expansion. According to Bugembe, the third quarter inflation is projected to stay around 5% due to the present monetary policy and declining global inflation, which will improve their performance.
The rest of the year will be focused on successfully carrying out our Ambition 2025 goals, which include advancing cutting-edge connectivity operations using the newly allotted spectrum, the executive continued. Expect faster data rates, the launch of e-SIMs, and 5G connection to meet the needs of our expanding client base.
In order to improve the performance of the fintech industry, Richard Yego, Managing Director of MTN Mobile Money Uganda Limited, reaffirmed the company’s commitment to accelerating the transition to cashless transactions through strategic alliances and an assertive approach to the mobile money ecosystem.
In order to fulfill the expanding market demand, we have restarted the rollout of MoMo agents and are changing our merchant offering, according to Yego.
Mulinge stated that, taking into account the financial element, they will maintain a disciplined capital allocation in their investments and prudently manage the company’s working capital to protect its balance sheet and liquidity position.
MTN’s financial success is a resounding tribute to the revolutionary potential of combining data and fintech, which has helped the company reach previously unheard-of heights in terms of profitability as the digital era continues to disrupt conventional financial paradigms.
