Ugandan businessman Charles Mbire’s MTN Uganda earns $23.7 million in profit in Q1 2022

MTN Uganda, a leading telecom services provider led by Ugandan businessman Charles Mbire, is off to a strong start in its first full reporting period following its public listing on the Uganda Securities Exchange in 2021.

According to data from the group’s most recent quarterly update, profit increased by 20.1 percent from Ush83.7 billion ($23.7 million) in the first quarter of 2021 to Ush100.5 billion ($28.5 million) in the first quarter of 2022.

This was driven by an 11-percent increase in service revenue and a 45-percent increase in data revenue as a result of the adoption of the internet and smartphones.

Despite the challenging environment, MTN Uganda maintained its market leadership in Uganda and delivered 8.5-percent growth in its overall mobile subscriber base to 15.9 million. The company also saw an 11-percent increase in service revenue, owing to strong growth in its data and mobile money segments.

Its profitability was also supported by the strong execution of its expense-cutting program, which enabled 11.8-percent growth in earnings before interest, taxation, depreciation, and amortization (EBITDA) and a 40 basis point increase in EBITDA margin to 51.6 percent.

As a result of the strong performance, the group’s total assets increased from Ush2.93 trillion ($827.62 million) last year to Ush3.53 trillion ($997.23 million), while retained earnings increased from Ush809.71 billion ($228.8 million) to Ush913.96 billion ($258.2 million).

MTN Uganda is Uganda’s largest telecom operator and MTN Group’s most profitable subsidiary in southeastern Africa, covering 97 percent of the country’s population with a robust infrastructure that includes more than 6,000 kilometers of fiber connectivity connecting over 15 million subscribers not only within the country but globally.

MTN Uganda is the fourth operating subsidiary of MTN Group, a South African multinational mobile telecommunications conglomerate, to be listed in Africa.

Under the leadership of Charles Mbire, who owns 3.98 percent of the company, the company has grown to become the leading telecom services provider in Uganda, with 15.7 million members and a market share of more than 55 percent.