MTN Uganda’s profit soars nearly 30%, fueled by data and fintech expansion

MTN Uganda has posted an impressive 29.6% increase in profit after tax for the first nine months of 2024, reaching Shs 459.4 billion. This growth surge, the company reports, stems from strategic expansions in data and fintech services.

With service revenue climbing by 20.1% year-over-year to Shs 2.31 trillion, MTN Uganda saw a 30.1% jump in data revenue and a 23.5% rise in fintech revenue. The telecom’s subscriber base grew by 13.3% to 21.6 million, driven by demand for both data services and mobile money.

“Our growth highlights MTN Uganda’s pivotal role in Uganda’s digital transformation,” said CEO Sylvia Mulinge. “We’re bringing digital and financial services closer to our customers, expanding access in ways that drive economic growth.”

The company’s Shs 297.9 billion capital investment expanded 4G coverage from 83.7% to 87.9% and supported a 5G rollout. A rise in data subscribers, up 24.1% to 9.3 million, boosted data traffic by 48.5%, supported by a device financing strategy that’s increasing smartphone use across the country.

Fintech revenue also grew, fueled by mobile money adoption and transaction volume, with total mobile money transactions reaching Shs 114.5 trillion and active users climbing by 13.2% to 13.2 million.

MTN Uganda’s EBITDA rose by 22.3%, lifting the EBITDA margin to 51.7%. This strong financial performance allowed the company to declare a second interim dividend of Shs 7.5 per share.

As MTN Uganda advances its “Ambition 2025” strategy, it plans to maintain growth in service revenue and EBITDA margin, focusing on digital inclusion and financial empowerment through continued investment in infrastructure.

“We’re excited about the future,” Mulinge said, “and remain committed to transforming lives through digital and financial inclusion.”