MTN Uganda Limited announced a solid set of first-quarter operating results. The company delivered a strong operational performance with overall mobile subscriber, recording an increase by 8.5% to reach 15.9 million. Active data subscribers increased by approximately 20.1% to 5.4 million supported by the data growth initiatives. As for fintech, subscribers increased by 14.9% to 9.5 million and service revenue grew by 11.0% to Ush 536.3 billion driven by double digit growth in key growth segments of data and mobile money and earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 11.8% to Ush 278.2 billion.
EBITDA margin expanded by 0.4 percentage points (pp) to 51.6%. In addition, the capital expenditure (CAPEX) increased by 280% to Ush 114.1 billion. Profit after tax (PAT)increased by 20.1% to Ush 100.5 billion, signifying an improvement in the profit margins at 18.6% from 17.2% the previous year.
Commenting on the results, MTN Uganda CEO, Wim Vanhelleputte said, “We made good progress in the first quarter of 2022 amidst a challenging macro environment following a protracted lockdown fuel to Covid-19. Trading conditions have been further affected by rising household inflation and fuel prices, exacerbated by the war in Ukraine, which have had a notable impact on consumer purchasing power. In spite of the tough environment, we maintained our market leadership in Uganda and delivered a solid growth overall.”
Outlook
The recent macroeconomic developments point to a more challenging trading environment. Despite the hideous impact of the war in Ukraine, MTN Uganda’s efforts for the remainder of the year will be geared towards a rigorous capital expenditure program in line with the NTO license mandate. In addition, the goal is to enhance the customer experience and increase financial inclusion and achieve a largely cashless economy in Uganda.