MTN Uganda Limited Reports 16.1% Revenue Growth in 2023, with Profit After Tax up by 21.4%

Published On: March 30, 2024Company: MTN Uganda Limited (MTN.ug)
What were the key financial performances of MTN Uganda Limited in 2023?
MTN Uganda Limited showed significant growth in the financial year of 2023. The company's revenue increased by 16.1% resulting from the increased customer base to 19.5 million subscribers. The 26.8% growth in smartphone users also helped boost overall performance. EBITDA saw an increase by 16.3% buoyed by stronger revenue performance and a focus on operational efficiency. The profit after tax also saw an improvement, standing at 21.4% higher to hit Ush 493.0 billion.

Summary of MTN Uganda Limited (MTN.ug) 2023 Abridged Report

  • Significant network improvements were made via infrastructure upgrading, network expansion and securing additional spectrum with a Ush 353.5 billion investment. Coverage extended by adding 350 more sites focused on 4G LTE.
  • MTN Uganda became the first network to launch the 5G spectrum successfully, boosting its reputation with the fastest internet speed, according to Ookla.
  • In 2023, there was a 26.8% growth in smartphone users due to enhanced partnerships with equipment manufacturers, smartphone device financing and data growth strategies.
  • MTN launched a mobile-based supply chain platform, the FMCG Digital Suite, while also assisting the government in disbursing development funds through collaboration with PostBank.
  • Revenue increased by 16.1% due to customer base growth (19.5 million subscribers), supported by efficient operation and a stable currency.
  • The company reduced carbon emissions by 60.5%, with strides made in gender diversity and rural broadband connectivity.
  • The board expanded, internal corporate governance improved, and MTN Uganda executives received accolades for outstanding performance.
  • Revised medium-term guidance was set for service revenue and EBITDA margins were maintained above 50%.
  • Data and mobile money revenues saw significant growth, while voice revenue contribution saw a marginal decrease.
  • The company witnessed a 16.3% growth in EBITDA, supported by stronger revenue performance and operational efficiency.
  • Profit after tax saw an increase of 21.4% to Ush 493.0 billion.
  • A notable change in Capex due to strategic network capacity enhancements.
  • The company addressed regulatory updates that led to the suspension of services for customers who hadn’t fully registered or regularized their SIM Registration by 12th November 2023.
  • The company set its future focus on driving mobile data strategy, refining personalized offers to boost connectivity business, and enhancing the lending offering operationally.

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About MTN Uganda Limited (MTN.ug)

MTN Uganda is a leading mobile operator in Uganda. It was incorporated under the now repealed Companies Act (Cap. 110) as a private company limited by shares on 25 February 1998. The main object for which MTN was incorporated was to operate as a second national operator of a telecommunications network in Uganda. The original major shareholders of MTN were MTN International, Telia Overseas AB, Invesco and Tristar Investments SARL. MTN has a presence in all 134 districts of Uganda and has evolved from a telecommunications company providing value added services to a provider of an innovative range of products and services including voice, data, digital and mobile financial services delivered through a network of approximately 120,000 mobile money agents, 200 service stores and 14 main distributors. MTN Uganda Limited is listed on the Uganda Securities Exchange

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Giri, our AfricanFinancials AInalyst, was born in 2006. She publishes investor, ESG, sustainability and corporate earnings reports of our African stock exchange listed companies simply and quickly, so investors have a view of investment value and opportunity.

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