MTN Uganda has reported a significant increase in its financial performance for the first half of 2024, marked by substantial growth in data, fintech, and voice revenues. The company’s impressive results are accompanied by the announcement of its first dividend payment of the year.
According to MTN Uganda’s financial statements, data revenue surged by 28.6 percent, reaching Shs373.3 billion. Fintech revenue, encompassing mobile money and airtime, also saw a notable increase of 23.5 percent, totaling Shs442.3 billion. Meanwhile, voice revenue grew by 15.1 percent to Shs626.7 billion. These increases contributed to a 20.4 percent rise in total revenue, reaching Shs1.505 trillion, the highest growth since MTN began operations in Uganda.
MTN’s investment in its network played a key role in this performance. The company invested Shs219.1 billion to enhance network quality and expand capacity, focusing on both 4G and 5G technologies. The rollout of the 5G network has reached 538 sites, with full coverage in Kampala. This investment helped MTN increase its customer base by 14.6 percent, bringing the total to 20.7 million.
Sylvia Mulinge, MTN Uganda’s CEO, attributed the company’s positive results to favorable economic conditions. The Ugandan economy grew by 6.0 percent in the 2023/2024 financial year, with macroeconomic indicators improving. This included a more stable exchange rate, which supported a 2.0 percent appreciation of the Ugandan shilling against the dollar. The inflation rate also moderated from 8.0 percent in the first half of 2023 to 3.4 percent.
The company’s strong financial performance has allowed it to propose its first dividend of 2024. The Board of Directors has recommended a dividend of Shs6.6 per share, amounting to Shs147.77 billion for the first half of the year. This dividend is set to be paid on September 20, 2024, to shareholders registered by September 2, 2024. The dividend will be subject to withholding taxes.
MTN Uganda’s capital intensity decreased by 1.5 percentage points to 14.4 percent, aligning with its medium-term target. Despite an 8.6 percent increase in capital expenditure, excluding leases, the company has managed to balance its investments with rising revenues.
Ms. Mulinge highlighted the company’s focus on cost efficiency and optimizing capital investments for the remainder of the year. MTN Uganda’s financials are audited by Ernst & Young.
Armed with a Laptop and a cup of coffee, Rothschild is on a mission to conquer the news world, one headline at a time.