Increased data sales help drive MTN Uganda 2018 revenuesMTN Uganda’s revenue in 2018 grew by 8.6% due to increased voice calls, data usage and MTN Mobile Money.
March 25—MTN Uganda reported that revenues grew by 8.6 percent during 2018, with sales for data providing the fastest growth up 26.6 pc. However, while active data users rose by 46.6 pc, revenue from voice (calls) only went up by 6.2 percent.
With just over half of the country’s total mobile phone subscribers holding a MTN Simcard, the company is a subsidiary of MTN Group based in South Africa and has been operating in Uganda since 1998. The company is currently trying to patch up things with the government following the deportation of some top managers due to claims of espionage. It is also waiting for final approval of its application to extend its operating license for another 10 years.
Referring to the latest results and sidestepping these unpleasantries, Rob Shuter the MTN Group CEO said, “Our growth is closely linked with the economic activity in the country and that reflects in our performance in 2018. The overall growth in revenue was due to a 46.6 pc rise in active data users that led to data revenue growing and a rise in the active Mobile Money users. These two market segments have added value to the economy by creating more opportunities for agents and also boosted innovation.”
According to a statement issued today, the Group said Uganda’s economy is estimated to have grown by 5.3 percent in 2018 driven by growth in the services sector and the industrial sector.
In the service sector specifically, there was growth in jobs as MTN contributed to the increased number of Mobile Money agents when it implemented the electronic recharge of airtime and introduced the cashless payment service, MTN MoMoPay. Active MoMo users are up 19.4 pc.
Other segments that contributed to MTN’s revenue growth include a rise in subscribers from 10.8 million at the end of 2017 to 11.2 million at the end of 2018. As a result of the growing subscriber base, MTN has increased its footprint to create job opportunities by employing over 1,200 staff directly and over 500,000 indirectly through mobile money and distribution network.
Shuter said, “MTN Group operates in 21 countries across Africa and the Middle East where we have significantly contributed to socio-economic transformation. We have encountered varying environments and experiences but have nonetheless been successful in most.”
He said MTN Uganda continued to carry out capital investments with an expenditure of UGX 222.4 billion. On average, MTN spends about UGX 200bn ($50 million) annually in investments and cumulatively over the last 20 years, it has invested over UGX 3.7 trillion ($1 billion). MTN remains the biggest taxpayer in Uganda with a tax contribution of UGX 3.9 trillion since 1998. MTN has also paid UGX 94 billion in spectrum fees and UGX 121 billion in support of the Rural Communications Development Fund (RCDF) to the Ugandan Communications Commission since inception.