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MTNs voice revenue rebounds amid data surge

Peter 12th Mar, 2024 Telecommunication Edward Kayiwa
MTNs voice revenue rebounds amid data surge

DREAM TEAM: (L-R) MTN Uganda CEO Sylvia Mulinge (MIDDLE), CFO Andrew Bugembe (L), and MTN MoMo MD Richard Yego, at their annual performance announcement in Kampala last week. COURTESY PHOTO/BUSINESS EDGE


MTN Uganda has posted impressive growth in voice revenue despite a surge in data demand among consumers. The telecom giant revealed that voice revenue experienced double-digit growth of 10%, fueled by increased adoption of attractive bundle offerings and aggressive subscriber growth initiatives, among other factors, which led to a significant increase in subscriber numbers, with 937,000 subscribers added to its subscriber base in the third quarter of the year alone.

"While data consumption is on the rise, we continue to see strong growth in our voice revenue, thanks to our strategic initiatives and favorable market conditions," said Sylvia Mulinge, the MTN Chief Executive Officer. However, despite the robust performance, the contribution of voice revenue to overall service revenue slightly decreased to 44.7%.

However, Mulinge said this shift aligns with the company's medium-term strategy to diversify revenue streams and capture growth opportunities in higher-growth segments. She added that the telecoms revamped regional structure strategy has played a crucial role in driving positive results, further bolstering the company's subscriber base and revenue growth.

  • The ability to sustain strong voice revenue growth amidst surging data demand highlights MTN Uganda's resilience and strategic focus on meeting the evolving needs of its customer base. As we continue to navigate the dynamic telecommunications landscape, we remain committed to delivering innovative solutions and driving value for our stakeholders, she said.

Mulinge noted that the company's strategic investments in expanding network coverage, especially in rural and hard-to-reach areas, had led to a notable increase in the number of subscribers, as more individuals are brought onto the network.

With a commitment to innovation and customer satisfaction, Mulinge noted that the company is poised to capitalize on emerging opportunities and drive further growth in the market going forward.

  • According to UCC, the average Ugandan consumed approximately 1.7 GBs in 2023, while telecommunications networks posted a combined 138.5 million GBs in downloads during the same period. However, the telecoms data revenue also maintained its growth momentum, recording a remarkable 22% increase, supported by improvements in network quality and value-added data packages. The company reported notable growth in active data users, reaching 7.5 million, with a corresponding increase in data traffic by 51%.

The trend was maintained even for the mobile money segment, according MTN MoMo MD Richard Yego. We've witnessed a substantial increase in our user base, almost doubling from 400,000 to 800,000. Moreover, our transaction volume has skyrocketed, reaching an impressive 2.5 trillion. These figures are a testament to the impact we've had and the strides we've made in the market," he said.

He noted that central to this exceptional growth has been strategic initiatives, including robust regional expansion efforts that have yielded tangible results. Collaboration with partners has further fortified the telecoms market position and expanded its service offerings.

MTN MoMo's unwavering commitment to digitalization and innovation has been instrumental in setting it apart in the industry. The introduction of new platforms and services, coupled with advanced solutions, has garnered increased user engagement and adoption, particularly in regions where these innovations have been introduced, Yego added.

Reflecting on the company's overall performance, Yego expressed optimism, stating, "Our growth in various segments, including data, fintech, and digital revenue, coupled with a notable increase in profit after tax, exemplifies our resilience and strategic foresight. As we move forward, we remain committed to innovation, excellence, and delivering sustainable value to our stakeholders."

  • MTN Uganda reported a robust growth of 18.1% in fintech revenue, driven by increased adoption of mobile money services and cashless payments. The company's fintech subscriber base expanded by 9.7% to 11.6 million, with significant growth in merchant transactions on the MoMo Pay platform.
  • Andrew Bugembe, the MTN Uganda Chief Finance Officer, said the company has reported promising indicators of growth, with significant revenue expansion and a remarkable improvement in its net promoter score (NPS), reaching its highest post-COVID levels. These achievements serve as a testament to the effectiveness of MTN's strategic initiatives and underscore its resilience in navigating a dynamic business landscape, he said.

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