admin MTN Uganda said on Thursday its first-half pretax profit jumped 32.4% from the same period last year, lifted by strong data and financial technology services sales.
Highlights:
- MTNU’s revenues grew 10.03% to Ugx1.09Tn ($282.43Mn) from Ugx994.31Bn ($256.68Mn) supported by fintech and data segments that rose 27.80% and 21.90% respectively.
- Operating costs increased 18.98% to Ugx350.40Bn ($90.46Mn) driven by selling, distribution and marketing costs that grew 24.41% to Ugx200.51Bn ($51.76Mn).
- Profitability: EBITDA improved 7.17% to Ugx548.71Bn ($141.65Mn) while operating profit (EBIT) rose 24.90% to Ugx353.23Bn ($91.19Mn). The telco reported a 48.10% increase in profits after tax (PAT) to Ugx193.56Bn ($49.97Mn) from Ugx130.70Bn ($33.74Mn).
- Dividends: According to the results release, the directors of MTN Uganda have approved payment of an interim dividend of Ugx5.00 per share for the six months ended 30 June 2022. The dividend will be paid on September 30 2022 to shareholders of record as of September 01 2022.
The firm, a unit of South African telecoms giant MTN Group, is Uganda’s largest telecommunications firm by subscribers.
In the six months to June 30, the company said its pretax profit rose to 275.6 billion shillings ($71.1 million) from 208.1 billion in a similar period last year.
During the period there was “strong performance in our data and fintech (mobile money) revenue segments,” Chief Executive Wim Vanhelleputte said in commentary accompanying the results.
Mobile money, a service that allows payments and transfers between mobile phone users, grew 20.5%, while data sales expanded by more than a third.
Vanhelleputte said MTN Uganda’s performance in the period was constrained by several economic challenges including surging food and fuel prices, a harsh drought across large parts of the country and global supply chain snags.
