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MTN Uganda, a Kampala-based telecom company partly owned by Ugandan tycoon Charles Mbire, achieved exceptional financial performance at the close of its 2022 fiscal year.
Thanks to the widespread uptake of its mobile money services, the company’s profits have exceeded $100 million, marking a significant milestone.
As MTN Group’s fourth subsidiary in operation, MTN Uganda has firmly established itself as the leading telecom operator in Uganda, serving an impressive 97 percent of the country’s population.
With a subscriber base of over 17 million, the company has not only solidified its presence domestically but also extended its reach globally.
MTN Uganda’s financial results for 2022 surpassed expectations, with the company recording a profit of Ush406.1 billion ($109.6 million), marking a 19.3-percent increase from the previous year’s Ush321.68-billion ($87 million) profit.
This success was driven by the company’s financial technology and data services, which include mobile money services that enable clients to transfer funds, make payments, and conduct other commercial transactions.
Despite challenging macroeconomic conditions characterized by slow economic growth, a weaker shilling, rising inflation, and rising interest rates in the first three quarters of the year, MTN Uganda’s revenue increased by 9.7 percent, rising from Ush1.88 trillion ($508 million) to Ush2.06 trillion ($556.5 million).
Sylvia Mulinge, CEO of MTN Uganda, expressed her satisfaction with the company’s performance, stating that the results for 2022 were solid.
“In 2022, we delivered solid results while navigating challenging macroeconomic conditions characterized by slow economic growth, a weaker shilling, rising inflation, and an interest rate that rose in the first three quarters of the year,” Mulinge said.
“Our improved data performance and revamped device financing program have further attracted an additional 1.4 million data customers to our network, increasing our smartphone penetration this year to 35 percent (up by 4.2 percentage points). On the fintech front, we have continued to grow rapidly, reaching new milestones in product rollout and merchant partnerships, thus further deepening digital and financial inclusion,” she added.
Following a double-digit surge in earnings, MTN Uganda has proposed a dividend of Ush5.5 ($0.00162) per share, bringing the total dividend for 2022 to Ush15.9 ($0.00432) per share, up from Ush15 ($0.00405) in 2021.
Despite the impressive financial results, the company’s share price on the Uganda Stock Exchange has remained unchanged at Ush175 ($0.0472) per share, leaving its market capitalization at an estimated Ush3.92 trillion ($1.08 billion) and making it the third most valuable company on the local bourse.
Mbire, the company’s chairman, is the wealthiest investor on the Uganda Stock Exchange, owning 3.99 percent of MTN Uganda, which translates to 894,494,705 shares. His stake in the telecom services provider is presently worth Ush156.4 billion ($42.1 million).
