Home » Ugandan tycoon Charles Mbire’s MTN Uganda reports more than $50 million in profit in H1 2022

Ugandan tycoon Charles Mbire’s MTN Uganda reports more than $50 million in profit in H1 2022

by Mfonobong Nsehe
Charles Mbire

MTN Uganda, a telecom services provider led by Ugandan businessman Charles Mbire, has been able to replicate the stellar performance that it delivered earlier this year in the first quarter, as profits increased by double digits in the first six months of 2022.

Profits increased by 48.1 percent to Ush193.6 billion ($50.2 million) in the first half of 2022, compared to Ush130.7 billion ($33.7 million) in the first half of 2021.

MTN Uganda, MTN Group’s fourth operating subsidiary, is Uganda’s largest telecom operator and MTN Group’s most profitable subsidiary in southeastern Africa, serving 97 percent of the country’s population.

The telecom outfit connects more than 15 million subscribers not only within the country but globally, and Ugandan businessman Charles Mbire, who played a seminal role in the growth of the telecom services provider, owns 3.98 percent of the company.

While the management’s cost-cutting strategies positively impacted the group’s earnings, its first-half results revealed that the double-digit rise in profit can be attributed to a 10-percent increase in service revenue for the period under review, from Ush994.3 billion ($256 million) to Ush1.09 trillion ($282.4 million).

The 10-percent increase in revenue was driven by a 36.8-percent increase in data revenue and a 20.5-percent increase in fintech revenue, which were more than sufficient to offset the 4.9-percent decline in voice revenue.

Wim Vanhelleputte, the outgoing CEO of MTN Uganda, commented on the half-year performance, stating that the group delivered a resilient financial performance amid difficulties in the macroeconomic environment characterized by increased inflationary and currency pressures.

“Against this backdrop, we have continued to invest in our business, with capital expenditure of Ush201.7 billion ($52 million) in the first half of 2022, which has underpinned the resilience and quality of the network serving our customers,” he said.

As a result of the company’s strong financial performance, the board of directors has approved the payment of an interim dividend of Ush5 ($0.00128) per share for the six months ending June 30, totaling Ush11.95 billion ($28.9 million), subject to withholding taxes.

The group’s assets increased significantly from Ush1.93 trillion ($497.4 million) to Ush2.12 trillion ($546.4 million), while retained earnings rose from Ush743.1 billion ($191.5 million) to Ush902 billion ($232.4 million).

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