MTN Uganda, has today released a positive performance for the quarter ended March 31, 2024. This positive performance comes despite facing some economic headwinds, including rising inflation. Let’s break down the key takeaways from MTN Uganda’s report:
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MTN Uganda’s service revenue grew by an impressive 19.4% compared to the same period last year. This growth was driven by strong performances in all three of their core business segments: voice, data, and fintech. Voice revenue increased by 15.5%, driven by subscriber growth and customer value management initiatives. Data revenue grew by 22.4%, fueled by a significant increase in active data subscribers and data usage per subscriber. Fintech revenue, which includes mobile money services, saw a healthy growth of 23.5%, driven by an increase in both subscribers and transaction volume.
Network Investment Boosts Data Usage and 4G Coverage
MTN Uganda is heavily invested in network improvements, particularly focusing on expanding 4G LTE and deploying 5G infrastructure. This investment has paid off, with 4G population coverage increasing by 4.5 percentage points year-over-year to reach 85.2%. This improved network performance has led to a surge in data usage, with data traffic increasing by 68%. Additionally, MTN Uganda has been recognized for having the fastest network in Uganda and the fastest LTE network in Africa at the MWC Barcelona 2024 conference.
Mobile Money on the Rise
MTN Uganda’s mobile money (MoMo) platform continues to see strong growth. The number of fintech subscribers increased by 1.5 million year-over-year, leading to a 26.6% growth in transaction volume and a 17.8% growth in transaction value. This indicates that more and more Ugandans are embracing mobile money for various financial transactions.
Focus on Digital Lifestyle and Financial Inclusion
MTN Uganda is committed to promoting a digital lifestyle for its customers. They’ve launched initiatives like “Tesa deals,” an online marketplace within the My MTN app, to support entrepreneurship. Additionally, the MoMo app now offers an online ticketing service, making event management more convenient. Furthermore, MTN Uganda is working towards financial inclusion by collaborating with Mastercard to expand its service offerings and reach more people.
Commitment to Social Responsibility and Employee Well-being
MTN Uganda takes pride in its social responsibility initiatives. They served as the official telecommunications partner for major summits held in Uganda and were recognized as the Best Employer of the Year 2023 by the Federation of Uganda Employers. This award acknowledges their efforts in promoting diversity, inclusion, and employee engagement.
Maintaining Growth Momentum
While inflation might pose some challenges in the coming months, MTN Uganda remains confident in its ability to maintain its growth trajectory. Their focus lies in customer acquisition strategies to sustain voice revenue growth, driving data usage and engagement through customer value management initiatives, and continuously investing in network infrastructure. In the fintech space, they plan to further expand their loan and savings offerings and enhance merchant onboarding to encourage cashless transactions. Additionally, they aim to broaden their shareholder base by exploring further shareholding sell-down to the public.
