MTN Uganda Limited has posted a 5.8% rise in Profit After Tax(PAT) to USh 340.4 Billion($95.3 Million) according to its audited results for the financial year ended 31st December 2021.
The number of mobile subscribers increased by 10.7% to 15.7 Million while active data subscribers was up 16.0% to 5.3 Million. Active fintech subscribers grew by 9.4% to 9.9 Million while MTN Uganda service revenue grew by 9.4% to USh 2.04 Trillion.
Earnings before interest, tax, depreciation and amortization(EBITDA) grew by 13.8% to USh 1.06 Trillion while earnings per share(EPS) increased by 5.8% to USh 15.2
MTN Uganda Dividends to shareholders
Directors of the firm have proposed a final dividend for the year at USh 4.706 per share or USh 105.4 Billion with total dividend for the year at USh 14.99 of USh 335.6 Billion.
” 2021 marked a major milestone for MTN Uganda as 20% of the issues shares of the company were offered to the market in an initial Public Offering(IPO) valued at US$ 1.25 Billion. The IPO reduced the ownership of MTN Group from 96% to 83.05% which aligns with MTN’s group-wide objective to create shared value, partly through ensuring broad-based ownership in all its operating subsidiaries. This strategic priority also aligns with Uganda Communications Commission licensing requirement for a broad-based ownership by Ugandans,” said Wim Vanhelleputte, MTN Uganda CEO.
The IPO attracted 21,394 applications, with majority of these being Ugandans meeting the National Telecommunications Operators(NTO) license requirements of listing.
The participation of the National Social Security Fund and other local pension funds facilitated more than 2.2 million local investors who became indirect investors in MTN Uganda. 65% of MTN Staff also participated in the offfer.
” I am pleased to note that the company emerged as the best data and voice network in Uganda, having attained the Best Network Performance Score in the year in a countrywide assessment undertaken by Rohde& Schwarz, a leading independent monitoring and network testing firm,” said Vanhelleputte.
He added that MTN Uganda introduced a low-cost mobile device financing program in the market to make data access more affordable to customers.
” With more than 100,000 phones financed both internally and through partners, we see an increasing number of customers adopting data usage. This strategy, coupled with our dynamic data value proposition, will see supported smart phone penetration of 30.8%(+7.4pp) by the end of the year,” said Vanhelleputte.
He disclosed that MTN Uganda has invested a total of USh 270.2 Billion in projects targeted at improving the network services all over Uganda.
“Trading conditions in the year remained difficult due to impact of new COVID-19 variants, which exacerrbated an laready challenging macro-economic environment. The lockdowns and limitations of movement arising from COVI-19 resulted in significant restrictions on business operations” said Vanhelleputte.
In its Outlook, MTN Uganda is forecasting an improved macroeconomic environment in 2022. The firm says its capital expenditure program will enable to fulfil the NTO license obligation, which is targeting 90% landmass coverage by 2024.
MTN Uganda also plans to support 2G Voice to 3G voice traffic offloading which will reduce 2G Voice congestion and allow creation of a better customer experience.
The firms sees significant opportunity for data growth in fixed connectivity through MTN WakaNet, a fibre to home and fibre to business and says it will continue to invest in that segment.
MTN Uganda is progressing with the implementation of a new procing framework for the fixed data connectivity services to widen its customer catchment area. It will also continue with its device financing initiatives to drive smart phone penetration and maximize on the spectrum efficiencies which will be key in driving mobile data usage.
I UgSh is equal to US$ 0.00028
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