MTN announces sh640 billion in annual profits

Listed telecommunications company MTN has announced a significant 30.1% increase in net profits after tax to sh641.5b for the fiscal year ending December 2024. The company, a subsidiary of South Africa’s MTN Group, attributed this growth primarily to the expansion of its fintech and data segments, as outlined in its financial report released on March 6.
CEO Sylvia Mulinge emphasized that this growth was further fueled by a stable macroeconomic environment and strategic investments in 4G/5G infrastructure. These investments have led to an extensive network coverage of 87.9% for 4G and 15.3% for 5G, contributing to the steady financial performance of the company.
Mulinge highlighted the company’s success, stating, “Service revenue surged by 19.5%, driven by robust performance across all our business divisions. This growth can be attributed to substantial advancements in our data and fintech services, along with our ongoing commitment to fostering Uganda’s digital evolution.”
Looking towards the future, the company anticipates that inflation will remain under control in the short term, despite potential food price increases. The forecasted core inflation is expected to fluctuate within the 4-5% range throughout 2025. However, lingering uncertainties in the medium-term are anticipated due to external factors like geopolitical tensions and the possibility of a stronger US dollar.
In addition to its financial success, MTN also declared a substantial 32.8% boost in its final dividend to USh 8.5 per share or sh190b, resulting in a full-year dividend of USh 22.6 per share. The company also witnessed a notable increase in its subscriber base, growing by 13.2% to 22.0 million. Active data users surged by 22.4% to reach 10.1 million, while fintech users saw a 13.9% rise, totaling 13.8 million. Mobile money transactions also witnessed a significant upsurge of 26.6%, amounting to 4.3 billion transactions valued at sh158.6 trillion.
Moreover, service revenue climbed by 19.5% to sh3.1 trillion, fueled by notable increases in voice (12.7%), data (30.5%), and fintech (22.8%) revenues. The company’s strong financial performance and strategic investments in key areas have positioned it for continued success and growth in the ever-evolving telecommunications and digital landscape.