Ugandan tycoon Charles Mbire’s MTN Uganda posts $40-million profit in Q1 2024

Feyisayo Ajayi -

MTN Uganda, the Kampala-based telecoms operator partially owned by Ugandan tycoon Charles Mbire, sustained its impressive financial run in the first quarter of 2024. The company reported a profit of more than $40 million, reaffirming its position as a leading telecommunications services provider in the region.

According to the group’s unaudited financial results for the quarter ended March 31, 2024, its profit surged 24.35 percent to Ush150.03 billion ($40.03 million), from Ush120.65 billion ($31.97 million) in the prior-year period. This growth was driven by a 19.57 percent rise in revenue to Ush750.49 billion ($198.75 million) from Ush627.93 billion ($166.29 million).

Segment growth strengthens leadership

This strong performance builds on MTN Uganda’s success in 2023, with total revenue rising 16.75 percent to Ush2.67 trillion ($687.97 million). This further solidifies its position as one of the most profitable subsidiaries within the MTN Group.

Maintaining its industry leadership since its 2021 Uganda Stock Exchange listing, MTN Uganda reported significant growth across key segments. Voice revenue increased 15.5 percent to Ush315.4 billion ($83.57 million), while data and fintech revenue surged 22.4 percent and 23.5 percent to Ush177.9 billion ($47.12 million) and Ush216 billion ($57.16 million), respectively.

CEO highlights performance amidst headwinds

MTN Uganda CEO Sylvia Mulinge acknowledged the challenging macroeconomic environment, including a central bank rate hike, but emphasized the company’s resilience. “We delivered a robust performance in Q1 2024, growing our service revenue by 19.4 percent driven by solid growth in our voice, data, and fintech business units,” she said.

Charles Mbire’s role and continued growth

MTN Uganda, the fourth subsidiary of the MTN Group, has established itself as the dominant player in Uganda, As Uganda’s leading telecom operator, serving over 20 million customers, MTN Uganda’s assets also expanded by 20.16 percent to Ush4.96 trillion ($1.31 billion) from Ush4.13 trillion ($1.09 billion).

Under the chairmanship of Charles Mbire, who holds a 4 percent stake (895,561,810 shares), the company has solidified its domestic presence. Mbire, a prominent Ugandan businessman with diverse investments across telecommunications, finance, energy, real estate, and mining, remains a key player in the country’s economy.