MTN Uganda sees positive momentum continuing into 2023

MTN Uganda Board Chairman Charles Mbire
In Summary

MTN Uganda continues to see sustained revenue growth with projections for Q1 2023, showing a positive […]

MTN Uganda continues to see sustained revenue growth with projections for Q1 2023, showing a positive trajectory across all revenue streams. Presenting financial highlights during the company’s AGM on May 19, chief executive Sylvia Mulinge reported that Q1 had seen improved revenue performance across all segments with voice rising 8.8pc over the comparable period for 2022, to weigh in at UGX272.9 billion during the quarter to March 2023. Earnings from data improved 25pc to UGX 145.2 billion, Fintec revenue was up 20.7pc to UGX174.8 billion while service revenue rose 15.8pc to UGX 621.1 billion.

Mulinge said the operation managed to register growth against the significant headwinds of inflationary pressures that saw a spike in costs amidst depressed disposable income for consumers. Persistent high fuel prices impacted network sites expenditure, smartphone penetration continued to be weighed down by pressures on affordability, while a weakened local unit relative to the greenback, exerted pressure on operational expenditure and elevated finance costs. On the other hand, delays in spectrum allocation imposed drag on data performance.

The company’s performance was also reflected in its tax bill which amounted to UGX 927 billion, up from UGX 839 billion 2021. Mulinge said additional spectrum is needed to improve users digital experience and to support  the commercial launch of  a 5G network.  In a bid for sustainability, 64pc of the network transmitter stations have been converted from diesel to hydropower while greenhouse gas emissions were reduced by 4.4pc during the year under review. Mulinge also reported that the company was on course to cover 90pc of Uganda’s surface by 2025, in line with the provisions under the revised National Telecom Operator licence.

MTN Uganda Chairman Charles Mbire welcomed the shareholders to the AGM, the second such event since the multinational listed its stock on the Uganda Securities Exchange. Mbire announced a final dividend of UGX 5.5 per share taking the total dividend for the year to UGX15.9 per ordinary share. Dividend payments for all shareholders will be effected on June 23.

This hybrid AGM saw the in-person event held at the at the company’s head Office on Jinja road, while others participated via livestream. Voting on resolutions was done using USSD codes and a push button on the livestream panel.

Mbire further announced the appointment of Dr. Winnie Tarinyeba Kiryabwire as a non-executive director effective 3 March 2023. Dr. Winnie has served in various governance and oversight roles with various organizations in the public, private and not-for-profit sectors.

“We are confident that her wealth of experience will be invaluable in helping the company achieve its strategic objectives. On behalf of the board, I take this opportunity to welcome Dr. Winnie to the board and look forward to her contribution to the company’s success” Mbire said.

CEO Sylvia Mulinge said the company’s performance had been supported by strong subscriber growth across all revenue streams, a successful Expense Efficiency Program (EEP), increased prioritized capital allocation to support capex investment and responsive campaigns which have supported subscriber growth.

According to Mulinge, active network subscribers stood at 17.2 million in FY22 up from 15.7 million in FY21. Data users have increased from 5.4 million in FY 21 to 6.7 million in FY22. Mobile money Users have exponentially grown from 9.9 million users in FY21 to 11 million in 2022.  Data contributed 23pc of while mobile money added 15pc to total revenue according to the report.


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