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MTN Uganda, the Kampala-based telecom company partly owned by Ugandan tycoon Charles Mbire, has reported substantial financial growth, with profits for the first half of its 2023 fiscal year exceeding $60 million.
According to the company’s recently released financial results, MTN Uganda’s profit in the first half of 2023 soared by 17.8 percent, reaching Ush228.04 billion ($63.15 million). This remarkable achievement builds upon the company’s impressive performance in 2022, further consolidating its position as one of the most profitable subsidiaries within the MTN Group.
The surge in profit can be attributed to a substantial increase in revenue during the period, which rose by 15.8 percent, from Ush1.09 trillion ($302 million) to Ush1.26 trillion ($349 million). Key drivers of this revenue growth include a 22.1 percent rise in data revenue, an 18.6 percent increase in the company’s fintech revenue, and a 9.4 percent upswing in voice revenue.
MTN Uganda‘s data revenue was bolstered by its active data subscribers, which grew by 21.4 percent, reaching 6.9 million. The growth in voice revenue was supported by a net addition of 910,000 customers during the period, bringing the total customer base to 18.1 million, thanks to an effective customer value management strategy addressing product affordability and competitiveness.
Commenting on the financial performance, MTN Uganda CEO Sylvia Mulinge stated: “During the first half of 2023, we delivered a resilient performance in uncertain and evolving local and global macroeconomic conditions.” Mulinge acknowledged the impact of inflation, which averaged 8.0 percent in H1 2023, compared to 4.6 percent in H1 2022.
However, she expressed optimism due to the easing of inflation in Q2, closing at 4.9 percent, which should alleviate some pressure on customers and businesses moving forward.
As a result of the outstanding financial results, MTN Uganda’s total assets experienced a significant increase during the first half of the year, rising from Ush3.583 trillion ($992.6 million) to Ush4.159 trillion ($1.15 billion) as of June 30, 2023.
Additionally, the company’s retained earnings surged from Ush901.97 billion ($249.8 million) to Ush986.5 trillion ($273.43 million), further solidifying its position as one of East Africa’s most profitable companies.
Meanwhile, Mbire, the chairman of MTN Uganda, continues to maintain his position as the richest investor on the Uganda Stock Exchange. Holding a 3.99 percent stake in the telecom services provider, Mbire’s shares amount to 894,494,705, presently valued at Ush152 billion ($42 million).
