MTN Uganda has reported impressive growth in its home broadband sector for the second quarter of the current financial year, significantly boosting its service revenue. The telco achieved a remarkable 130% increase in active subscribers, underscoring the success of its broadband plan in a highly competitive market.
The company’s interim results revealed a 28.6% rise in overall data income, driven by a 26.8% surge in active data customers, reaching 8.8 million. MTN Uganda’s expansion in 4G and 5G fixed wireless packages, alongside a 54.2% year-on-year increase in its fibre network to 12,102 km, has further enhanced its data value proposition and connectivity.
Sylvia Mulinge, CEO of MTN Uganda, highlighted the company’s dual approach of promoting smartphone penetration through device financing and strategic partnerships. This strategy has led to a 5.9 percentage point growth in smartphone usage and improved data consumption metrics. The 19.9% increase in average subscriber data consumption and a 51.9% rise in total data traffic underscore the effectiveness of these investments.
Financially, MTN Uganda demonstrated strong performance with a 20.4% increase in service revenue, reaching $402,694 (Ush1.505.4 billion). The company achieved a 29.7% rise in profit after tax, totaling $79 million (Ush295.7 billion), reflecting its effective cost management and strategic network investments.
The fintech sector also saw significant gains, with fintech revenue rising 23.5% year-on-year, driven by a 25.7% increase in mobile money transactions. MTN Uganda’s investment in mobile money, including a successful loan campaign, contributed to a 28.2% increase in advanced revenue.
Looking ahead, MTN Uganda remains confident in its continued growth trajectory, bolstered by increasing demand for its services, ongoing network enhancements, and a focus on innovation and customer satisfaction. Despite potential macroeconomic challenges, the company is poised to maintain its financial resilience and deliver value to stakeholders.
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