(L-R) MTN Uganda CFO Andrew Bugembe, CEO Sylvia Mulinge and MTN MoMo MD Richard Yego announcing MTN Uganda annual performance in Kampala on March.06, 2024
Uganda’s largest telecom firm, MTN Uganda, plans to further sell-down the remaining 7% shareholdings to the public this year as it races to comply with the national regulatory requirements.
This decision comes as part of the telecom giant’s commitment to fulfill the mandatory legal requirement to list a minimum of 20% of its shares on the Uganda Securities Exchange.
However, during the initial offering to investors across East Africa -Uganda, Kenya, Tanzania, Rwanda, and Burundi – in 2021, the company fell short of its target, prompting a government extension to complete the sell-down in a three-year period.
Releasing the company’s financial results for 2023, MTN Uganda CEO Sylvia Mulinge, said the company’s localisation remains key as it prioritizes creating shared value, broadening local participation, and deepening the Uganda capital markets.
“Over the course of 2024, we will explore a further sell-down of 7% shareholding to the public to broaden Ugandan shareholding and provide an opportunity to investors to own a stake in the company,” she said.
MTN Uganda reported a 16.1% increase in service revenue, reaching UShs 2.63 trillion for the year ending December 2023, with after-tax profits surging 21.4% to UShs 493 billion. Data revenue experienced a 21.6% climb to UShs 621.9 billion.
The period also saw a 22.4% rise in active data subscribers, reaching 8.2 million, contributing to a 16.3% increase in EBITDA, which stood at UShs 1.37 trillion. Subscriber numbers overall ascended by 13.3%, totaling 19.5 million. Capital expenditure, excluding certain assets, increased by 5.5% to UShs 353.5 billion. The telecom leader proposed a UShs 403.0 billion dividend to its shareholders.
Highlighting the year’s milestones, Mulinge said the company is committed to expanding and upgrading its network infrastructure.
“We’ve deployed an additional 350 sites with a focus on 4G LTE, enhancing coverage by 6.7 percentage points to 85.1%, while our 3G and 2G networks now cover 92.6% and 98.6% respectively,” she noted. “Our pioneering rollout of 5G, with 37 sites, and recognition for the fastest internet speeds in Uganda by Ookla, underscore our commitment to excellence and customer satisfaction.”
Mulinge also spotlighted the success of the MTN Kabode programme, which led to a 26.8% growth in smartphone users and a 39.1% smartphone penetration rate on the MTN network.
She said the launch of e-SIM technology in the fourth quarter marked another innovative milestone, offering customers seamless carrier switching and plan management capabilities.
Future outlook
Looking ahead, Mulinge said the company is committed to investment in its network, customer acquisition, and fintech innovation.
“Our focus remains on advancing our mobile data and home broadband offerings, alongside refining our lending product with new partnerships and promoting our enhanced loan portfolio through the Wesotinge campaign,” she said.
Furthermore, Mulinge said MTN has entered into a new partnership with Ericsson to expand the capabilities of MTN’s Mobile Money (MoMo) service, leveraging the Ericsson Wallet Platform to bolster financial inclusion and enable secure, convenient mobile transactions for individuals and businesses.
She said the company is also dedicated to achieving its National Telecom Operating Licence obligations, which among others, include reaching a 90% geographical coverage across Uganda by 2025.