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MTN Uganda Sees Revenue and Customer Growth Recovery in 2023

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MTN Uganda, under the leadership of CEO Sylvia Mulinge, has reported a notable 16.1 percent increase in revenues, reaching 2.63 trillion shillings for the year 2023. The majority of these revenues, totaling 1.12 trillion shillings, were attributed to voice services, which experienced a growth rate of 11.6 percent. However, the most rapidly expanding segment was revenue from data usage, showcasing a growth rate of 21.6 percent and generating a total of 621.9 billion shillings.

The surge in voice revenues was attributed to the end-of-year festivities, accompanied by increased voice traffic and the optimization of bundled offerings, leading to a notable 15.2 percent growth during that period. Additionally, Fintech services, particularly mobile money, contributed significantly to the revenue stream, fetching 771.6 billion shillings, marking a growth rate of 17.6 percent.

Richard Yego, Managing Director of MTN Mobile Money Uganda Limited, highlighted the importance of MTN MoMo Pay, emphasizing its pivotal role as a key focus area in 2023. The transaction value more than doubled, resulting in increased revenue for the company.

MTN Uganda’s audited financial results showcased a 21.4 percent growth in profit after tax, amounting to 493 billion shillings. Shareholders were rewarded with dividends totaling 403 billion shillings, equivalent to 18 per share. Furthermore, the company witnessed a notable 13.3 percent increase in its customer base, reaching 19.5 million customers by the end of the year.

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While the contribution of voice services to total revenues declined to 42.5 percent, down from 44.2 percent in the previous year, data revenues experienced significant growth, primarily attributed to improved smartphone penetration, which stood at 39.1 percent. Additionally, two-thirds of the data traffic was carried on the 4G network, indicating a substantial increase from the previous year.

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Looking ahead to 2024, MTN Uganda anticipates further growth in alignment with the projected 5 percent GDP growth of the country. The company aims to achieve a geographical coverage of 90 percent of the country by 2025 as per the National Operators’ License provisions.

CEO Sylvia Mulinge highlighted the company’s achievements in network efficiency improvements through additional secured spectrum and expressed intentions to sell another 7 percent of shares to the public in the coming year. Regarding the Uganda Communications Commission’s directive to deactivate unregistered subscribers in November 2023, MTN Uganda reported minimal impact, affecting less than 1 percent of its subscriber base.

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