MTN Uganda has just released its latest interim dividend report, revealing substantial earnings from its voice, data, and mobile money services. Despite facing a significant $70.89 million tax dispute with Uganda’s revenue authority last month, MTN’s East African division achieved an impressive 29.6% increase in earnings, reaching $124.8 million for the nine months ending September 30, 2024.
Service revenue experienced a notable 20.1% rise, although non-service revenue saw a 14.5% decline. Voice and data revenue grew by 13.7% and 30.1%, respectively, while mobile money services posted a remarkable 25.6% increase. MTN attributes this growth to strategic financial management and a substantial increase in subscribers, driven by the expansion of 4G and 5G services, as the company continues to transform Uganda’s digital landscape.
MTN’s success is not limited to Uganda; other subsidiaries, such as MTN Nigeria and MTN South Africa, are also reporting strong performance despite facing unique challenges. In Nigeria, MTN has seen growth in data and mobile financial services, spurred by the country’s high demand for digital financial solutions and its large subscriber base. However, Nigeria’s economic conditions, including currency issues, have tempered growth. Despite these challenges, MTN Nigeria’s mobile money segment is thriving, reinforcing its competitive advantage in the market.
In South Africa, MTN’s home base, there is steady growth in both voice and data services, supported by a significant push into 5G and fintech. Although South Africa’s economy is sluggish and inflation remains high, MTN’s ongoing investments in digital services and network infrastructure continue to drive its success. The increasing adoption of mobile payments indicates a shift towards digital solutions over traditional banking.
In summary, while MTN Uganda, Nigeria, and South Africa are all experiencing growth, each market presents its own set of dynamics. Uganda’s rapid adoption of mobile money and enhanced connectivity fuels its growth, whereas Nigeria’s strong demand for data and digital payments maintains its competitiveness despite regulatory challenges. South Africa benefits from a more advanced market but faces economic slowdowns that moderate growth.
