Mozambique President Nyusi Calls for Youth Engagement in Digital Technologies

MTN Uganda is poised to reward its shareholders with an interim dividend of Shs 6.6 per share, totaling Shs 147.8 billion, following impressive financial results for the first half of 2024. This dividend payment, scheduled for September 20, is supported by a substantial 29.7% rise in net profit, which reached Shs 295.7 billion. This growth can be attributed to strong performances in various service areas, including voice, data, and fintech services.

Voice revenues saw a notable increase of 15.1%, bringing in Shs 626.7 billion, while data revenues surged by 28.6% to Shs 373.3 billion. The fintech segment also performed well, growing by 23.5% to reach Shs 442.3 billion. Overall, MTN Uganda's total service revenue climbed by 20.4%, amounting to Shs 1.5 trillion. This positive trend was bolstered by a 14.6% increase in the company's mobile subscriber base, which now totals 20.7 million users.

Earnings before interest, tax, depreciation, and amortization (EBITDA) rose significantly by 22.4%, reaching Shs 784.7 billion. This performance underscores MTN Uganda's ability to maintain momentum in line with broader economic growth, as the Ugandan economy expanded by 6.0% during the 2023/24 financial year.

CEO Sylvia Mulinge attributed this robust performance to strategic investments in network improvements aimed at enhancing quality, capacity, and resilience, particularly in 4G and 5G technologies. The company invested Shs 219.1 billion in these enhancements, resulting in a 4.4 percentage point increase in 4G LTE population coverage, which now stands at 87.8%. The rollout of 5G technology has also progressed, with coverage extended to 538 strategic sites, achieving full coverage in Kampala. Additionally, 2G and 3G population coverage improved to 98.9% and 93.2%, respectively, as MTN Uganda continues its efforts to enhance connectivity throughout the country.

In the fintech arena, Mulinge highlighted the company's commitment to developing a comprehensive ecosystem for digital financial services. This includes the launch of a new loan suite called Wesotinge, in collaboration with five financial institutions, designed to meet customers' short- and long-term liquidity needs. The introduction of a short-term credit facility, Merchant Xtra Stock, along with an increase in cash points for agent top-ups, contributed to a significant 25.2% year-on-year rise in transaction volumes, which reached 2.0 billion.

Looking ahead, Chief Finance Officer Andrew Bugembe underscored MTN Uganda's unwavering commitment to its medium-term guidance framework, which is essential for navigating the evolving telecommunications landscape. This framework is designed to strategically position the company to maximize growth opportunities while maintaining robust financial health.

One of the primary objectives outlined in this framework is the pursuit of mid-teen growth in service revenue. This ambitious target reflects MTN Uganda’s confidence in its ability to attract new subscribers and enhance service offerings to existing customers. By leveraging advancements in technology, expanding its network infrastructure, and enhancing customer engagement, the company aims to drive significant revenue growth over the coming years.

In addition to revenue growth, Bugembe emphasized the importance of maintaining stable EBITDA margins above 50%. This focus on profitability is crucial for ensuring that the company can sustain its operations and invest in further growth initiatives. By optimizing operational efficiencies and managing costs effectively, MTN Uganda seeks to protect its margins while delivering value to shareholders.

Furthermore, the company plans to manage its capital expenditure intensity at mid-teen levels. This approach indicates a balanced strategy of investing in necessary infrastructure improvements and technological upgrades without overextending its financial commitments. By carefully managing capital expenditures, MTN Uganda can ensure that it remains agile and responsive to market changes, all while continuing to enhance its service quality and customer experience.

Overall, this strategic focus positions MTN Uganda not only to capitalize on growth opportunities but also to ensure sustainable financial performance. By prioritizing revenue growth, margin stability, and prudent capital management, MTN Uganda aims to strengthen its competitive position within the telecommunications industry. The company is committed to evolving alongside customer needs and market dynamics, ultimately fostering a modern, connected life for all its users. As MTN Uganda progresses toward these objectives, it remains poised to enhance its service offerings, improve operational efficiencies, and deliver consistent returns for its shareholders.