Mobile services operator MTN Group has reported a $64.2 million net profit for the half year ending June 30, 2023 from its subsidiaries in Uganda and Rwanda, lifted by revenue from data and mobile money segments. This was in spite of high operating costs.
The results made public this week show MTN Uganda’s profit after tax jumped 17.8 per cent to $62.7 million from $50.3 million reported in the same period last year.
The Uganda telecommunications market leader weathered the high cost of staff, energy, leases, external service spending, and capital expenditure, to post good results.
“During the first half of 2023, we delivered a resilient performance in uncertain evolving and global macroeconomic conditions,” Sylvia Mulinge, chief executive MTN Uganda, said during the release of the results on August 4.
She said the heightened inflationary environment during the period impacted consumers and the telco’s operations.
Uganda’s inflation rate during the first half of this year averaged eight per cent compared to 4.5 per cent in the corresponding period last year.
MTN Rwanda, on the other hand, profits fell 43.2 per cent to $1.5 million, from $2.6 million, in the same period last year as earnings took a big hit from the sharp depreciation of the Rwanda Franc against the US dollar and a sharp drop in voice call revenues.
“Macroeconomic conditions remain elevated with the inflation rate gradually reducing in the first half year 2023 by 7.9 pp (percentage points) to 13.7 per cent, driven by the government’s fiscal and monetary interventions,” said Mapula Bodibe, MTN Rwanda CEO in a statement.
“Despite navigating these challenges, our unwavering focus remains on implementing our Ambition 2025 strategy, propelling growth and fortifying our position as a leading telecommunications provider,” she added.
MTN Rwanda reported an increase in revenue from $90.3 million to reach $103.6 million, driven by an increase in mobile phone, data and mobile money subscribers. Data revenue grew by 22.5 per cent buoyed by growth in active data users as well as a 12.9 per cent increase in data bundle usage per active subscriber.
“Smartphone penetration increased by 3 pp to 24.5 per cent as we continue to promote and enhance our macye macye campaign offerings,” the financial results indicate.
Despite MTN Uganda reporting growth in voice segment growth, its contribution to total revenues declined from 45.5 per cent to 43 per cent, as data and fintech revenue segments
