MTN reports sh640b in annual profits

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Listed telecom firm MTN has reported a 30.1% jump in net profits after tax to sh641.5b for the 12 months period ending December 2024.

MTN, a subsidiary of South Africa’s MTN Group, noted that growth was largely driven by growth in its fintech and data segments in its earnings report published on March 6.

CEO Sylvia Mulinge said the growth was also supported by a stable macroeconomic environment and the firm’s strategic investments in investments in 4G/5G infrastructure, which boosted network coverage to 87.9% for 4G and 15.3% for 5G.

“Service revenue grew by 19.5%, anchored by the positive performance across all of our business lines. We attribute this growth to significant expansions in our data and fintech offerings and a continued commitment to driving Uganda’s digital transformation,” she said.

"Looking ahead, the central bank expects inflation to remain well-contained in the near term, despite the seasonal uptick in food prices. Core inflation is expected to trend in the range of 4-5% in 2025.

“However, the outlook in the medium-term remains uncertain largely stemming from external factors such as escalation of geopolitical tensions as well as the potential for US dollar strengthening.”

The company also announced a 32.8% increase in its final dividend to Ush 8.5 per share or sh190b, bringing the full-year payout to Ush 22.6 per share.

MTN Uganda’s subscriber base expanded by 13.2% to 22.0 million, while active data users grew 22.4% to 10.1 million. Fintech users increased 13.9% to 13.8 million, with mobile money transactions rising 26.6% to 4.3 billion, valued at sh158.6 trillion.

Service revenue climbed 19.5% to sh3.1 trillion, fueled by double-digit gains across voice (12.7%), data (30.5%), and fintech (22.8%).