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MTN Uganda Records Shs292.7bn Net Profit In Nine Months As Subscribers Grow To 16.7M

The MTN Uganda Chief Executive Officer, Sylvia Mulinge

MTN Uganda Ltd (MTN Uganda) has today announced its unaudited results for the nine-month period ended 30 September 2022, recording impressive growth in key performance parameters.

MTN’s profit after tax increased by 21% to Shs292.65bn in September 2022, up from Shs241.9bn recorded in September 2021.

The telecom giant saw its total revenue grow by 11.6% to Shs1.68 trillion in September 2022 from Shs1.5 trillion recorded a year earlier.

The results show that mobile subscribers increased by 9.2% to 16.7m, from 15.2m in the period under review.

Meanwhile, data subscribers grew by 28.8% to 6.1m in September 2022, up from 4.7m recorded a year earlier.

The Fintech subscribers increased by 19.3% to 10.6m from 8.89m in the period under review.

The results show that voice revenue declined by 2.3% which the company attributes to continued macroeconomic pressures, including inflation which has impacted its customers’ spending power.

Data revenue was up by 29.8%, on the back of sustained growth “in our active data users by +28.8% to 6.1m (net additions of 300k in Q3) as well as improved internet propositions and network quality.”

“Fintech revenue grew by 23.2% as our MoMo active subscribers increased by 19.3% to 10.6m,” the statement reads.

Interim Dividend


The Company directors have approved the payment of a second interim dividend of Shs5.4 per share (Shs120.9bn) for the quarter ended 30 September 2022.

Commenting on the performance, MTN Uganda Chief Executive Officer, Sylvia Mulinge, said: “MTN Uganda has remained resilient in the first nine months of 2022, navigating the prevailing tough macroeconomic conditions, to deliver double-digit service revenue growth in line with our medium term guidance.”

She added that a combination of global factors, recent drought and a weaker shilling have driven inflation to the highest level recorded in 10 years and this has impacted on their foreign denominated positions and investment programmes  as well as customer spending power.

Outlook

“Emerging trends signal a tougher macro-ecomomic environment ahead; however, we remain confident in our adaptable business model focusing on cost management and sustained improvement in our customer value proposition to retain and broaden our subscriber base,” the statement reads, adding: “We will continue to navigate, invest, and execute our strategy with a focus to deliver on our service revenue growth and margins to enhance  shareholder returns.”



Taddewo William Senyonyi
https://www.facebook.com/senyonyi.taddewo
William is a seasoned business and finance journalist. He is also an agripreneur and a coffee enthusiast.

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