MTN Uganda Limited has released its interim financial results for the six months ending June 30, 2024, showcasing substantial growth across various segments.
Voice revenue experienced a notable 15.1% year-on-year increase, driven by an aggressive customer acquisition strategy and a refreshed nationwide voice campaign. Enhanced all-network bundle packages were well-received, emphasizing value and affordability, while strategic investments in service touchpoints and network sites, especially in upcountry regions, resulted in a 2.6 million increase in the customer base. Despite the growth, the contribution of voice revenue to service revenue slightly declined to 41.6%, down 1.6 percentage points from the previous year, due to the significant performance in the data and fintech segments.
Data revenue saw a remarkable 28.6% growth, supported by a 26.8% increase in active data users, reaching 8.8 million. MTN’s strategy of boosting smartphone penetration through device financing and partnerships with manufacturers led to a 5.9 percentage point rise in smartphone usage to 41.6%. Enhanced data value propositions reduced churn and increased usage, with average subscriber data consumption rising by 19.9% and total data traffic up by 51.9%. Notably, 4G traffic accounted for over two-thirds of total data volume. The second quarter alone saw data revenue grow by 34.8% year-on-year, driven by enhanced 4G LTE investments.
MTN’s home broadband strategy also unfolded positively, with a 130% growth in active subscribers. The introduction of 4G and 5G fixed wireless packages and a 54.2% year-on-year increase in the fiber network to 12,102 km bolstered this growth. Consequently, data revenue’s contribution to service revenue rose to 24.8%, up from 23.2% in the first half of 2023.
The fintech segment registered a 23.5% year-on-year growth, highlighted by a 25.7% increase in mobile money business revenue. Transaction volumes rose by 25.2% to 2.0 billion, with transaction values up by 12.6% to Ush 69.4 trillion. Higher merchant payments and peer-to-peer activity, coupled with the success of the Wesotinge loan campaign, drove this growth. Advanced revenue contribution also increased to 28.2%, with the number of merchants and agents growing by 43.1% and 24.9%, respectively.
Digital revenue grew by 26.0%, driven by content value-added services. The ayoba super app saw a 34.6% year-on-year increase in subscribers, reaching 1.9 million users.
MTN Uganda’s EBITDA grew by 22.4% year-on-year, supported by strong revenue growth and operational efficiency amidst relatively low inflation and exchange rate stability, resulting in a 51.5% margin, a 0.9 percentage point improvement year-on-year. The second quarter recorded even faster EBITDA growth of 25.3%, bolstered by lower inflation rates compared to the same period last year.
These results reflect MTN Uganda’s strategic focus on expanding its customer base, enhancing service offerings, and driving revenue growth across multiple segments, positioning the company strongly for future growth.
