MTN Uganda Releases Q1 Unaudited Results

MTN Uganda, as well as the related JSE SENS announces its Q1 unaudited results for the quarter ended March 31, 2024.

Key highlights are:

• Mobile subscribers grew by 12.0% to 19.9 million
• Active data subscribers increased by 27.6% to 8.6 million
• Active fintech users increased by 13.6% to 12.4 million
• Service revenue grew by 19.4% to Ush 741.4 billion
• Voice revenue grew by 15.5% to Ush 315.4 billion
• Data revenue grew by 22.4% to Ush 177.9 billion
• Fintech revenue grew by 23.5% to Ush 216.0 billion
• Earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 19.6% to Ush 390.4 billion
• EBITDA margin was stable at 52.0%.
• Profit after tax (PAT) increased by 24.4% to Ush 150.0 billion
• Capital expenditure (capex) increased by 27.9% to Ush 122.0 billion

CEO for MTN Uganda, Sylvia Mulinge comments on the Q1 unaudited results ” We sustained a positive trajectory across all business segments amidst heightened pressure on key macroeconomic indicators. Average YoY inflation subsided to 3.2% in the quarter (Q1 2023:9.5%), although it accelerated sequentially from the Q4 2023 average of 2.5%, driven by higher energy, fuel and utilities inflation. The Uganda shilling depreciated by 2.7% against the US dollar in the quarter, following a relatively stable full year 2023 which registered a 1.8% depreciation. In this context, we are pleased with the strong operational and strategic execution delivered in the period, which enabled us to exceed our medium-term targets of mid-teens revenue growth and margin stability.”

“Our service revenue grew by 19.4%, underpinned by strong double-digit growth in voice (up 15.5%), data (up 22.4%) and fintech (up 23.5%) revenues. We delivered a 19.6% expansion in EBITDA, supported by a disciplined focus on expense efficiencies which helped to maintain our EBITDA margin at 52.0%.” adds Mulinge

“Our robust financial result was further driven by a solid commercial performance with subscribers up by 12.0% to 19.9 million, as we navigated the SIM- registration regulations in the market. Active data subscribers and fintech users were up by 27.6% and 13.6%, respectively. To accelerate core connectivity, we invested a total of Ush 122.0 billion focusing on strategic network enhancements particularly on 4G LTE. We also in- creased our fiber deployment and 5G coverage as we enriched our home broadband proposition.” she continues

“We are pleased with the performance achieved this quarter and for the support received from all the stakeholders of the business particularly our customers, staff and regulators. We remain focused on maintaining the growth momentum and ensuring EBITDA margin resilience, in line with our Ambition 2025 objectives.” she concludes