MTN Uganda posts $637.4 million revenue in 9M 2024

Feyisayo Ajayi -
Key Points
  • MTN Uganda reported a 19.6% revenue increase, reaching $637.4 million, driven by growth in data and fintech sectors.
  • The company’s profit surged 29.6% to $125.6 million, with a proposed interim dividend of $45.9 million for shareholders.
  • MTN Uganda remains the market leader with 21.6 million subscribers, despite a slight decline in total assets.

MTN Uganda, the Kampala-based telecom operator partly owned by Ugandan tycoon Charles Mbire, delivered impressive financial results for the first nine months of 2024, with revenue reaching $637.4 million, a significant increase from the previous year.

Key growth drivers: Data and fintech sectors

The company’s interim financial report revealed a 19.61 percent rise in revenue, jumping from Ush1.95 trillion ($532.61 million) in the same period of 2023 to Ush2.33 trillion ($637.2 million).

This was fueled by the data and fintech segments. Data revenue surged by 30.1 percent, buoyed by a 24.1 percent increase in active data users, totaling 9.3 million.

Additionally, the fintech division reported a 23.5 percent growth, driven by a thriving mobile money business that contributed 25.6 percent to overall service revenues.

Digital revenue also saw a 23.1 percent year-over-year rise, attributed to enhanced uptake of commercial APIs and value-added services.

Voice revenue increased by 13.7 percent, supported by a 13.3 percent growth in subscribers and increased usage through optimized bundle offerings.

Increased profit and shareholder returns

MTN Uganda’s financial success translated into a notable profit increase of 29.6 percent, rising from Ush354.44 billion ($96.87 million) to Ush459.42 billion ($125.58 million).

CEO Sylvia Mulinge emphasized the company’s robust performance, stating, “Our service revenue grew by 20.1 percent, anchored by the resilient performance of voice and solid growth in our data and fintech verticals.”

In a bid to reward shareholders, the company’s directors proposed a second interim dividend of Ush7.5 ($0.0022) per share, totaling Ush167.92 billion ($45.89 million) for the nine months ending Sept. 30, 2024.

MTN Uganda dominates market despite decline

Despite a slight decline in total assets, from Ush4.68 trillion ($1.28 billion) in September 2023 to Ush4.59 trillion ($1.25 billion) as of Sept. 30, 2024, MTN Uganda remains the dominant player in the market with 21.6 million subscribers.

Retained earnings experienced a robust 16.97 percent increase, rising to Ush1.16 trillion ($317.08 million) from Ush991.83 billion ($271.03 million).

Under the leadership of Charles Mbire, who holds a significant 4 percent stake in the company, MTN Uganda continues to solidify its market leadership position. Mbire's substantial ownership secures his status as the wealthiest investor on the Uganda Stock Exchange.