MTN Uganda has reported a 20% increase in profit after tax to Shs 120.6bn for the first quarter of the current financial year.
The company, which is listed on the Uganda Securities Exchange, also posted a profit before tax of Shs 168.7bn for the three-month period to March, up 17.4% compared to the same period in the previous year.
The rise in earnings before interest, taxes, depreciation and amortisation (EBITDA) by 17.3% to Shs 326.4bn was supported by higher service revenue and operational efficiencies driven by MTN Uganda’s expense efficiency programme and disciplined capital allocation.
Strong growth in data and fintech service revenues
MTN Uganda’s data and fintech service revenues increased by 25.7% and 20.7% to Shs 145.3bn and Shs 174.8bn respectively, contributing to a 15.8% rise in total service revenues to Shs 621.1bn.
CEO Sylvia Mulinge said the company’s focus is on enriching its MoMo ecosystem and platform capabilities to drive financial and digital inclusion, with a specific focus on scaling the adoption of payments and e-commerce.
Investment in network and infrastructure
MTN Uganda has concentrated its efforts on 4G network expansion, fibre network roll-out and infrastructure modernisation to enhance the user experience. This has resulted in the company’s 4G population coverage significantly increasing from 65% to 80.7% during the period under review.
MTN Uganda has also launched a partnership with Huawei Technologies to align its infrastructure towards a cloud-native 5G Capable Core network in preparation for 5G.
Ms Mulinge said that while the capital expenditure, excluding right of use assets, in the period decreased by 16.3% to Shs 94.5bn as a result of base effects arising from accelerated investment in the prior year, it is expected to increase in the medium-term to support the company’s growth prospects.
She added that MTN Uganda is also investing in its network in preparation for 5G to address customers’ requirements and support sustained 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 said, adding, “This initiative will enable a future-oriented network with greater service agility, innovation for both consumer and industrial verticals, and improved operational efficiency.”
“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,” she said.