MTN Uganda sees a 5.8% net earnings rise in 2021

MTN Uganda Limited has reported a 5.8% rise in Profit After Tax to $95.3 million for the financial year ending on December 31, 2021. The CEO of MTN Uganda, Wim Vanhelleputte, highlighted the company's performance during a CNBC Africa interview discussing the financial results. Vanhelleputte emphasized the challenging operating environment in 2021 due to the impact of severe lockdown restrictions and a 7 p.m. curfew imposed in Uganda, which significantly affected the informal economy and hindered the growth potential of the fintech business. Despite these challenges, the company saw solid results with the fintech business growing by more than 10%, albeit potentially limiting its full growth potential. The CEO indicated that data, on the other hand, benefited from the COVID-19 restrictions and witnessed significant growth. However, Vanhelleputte noted that data is still considered a niche product in Uganda, with only a small percentage of the population having access to work or learn from home opportunities. The CEO highlighted the importance of providing access to smartphones to sections of the population that currently lack the purchasing power, as smartphone penetration in Uganda stands at only 30%, showing room for growth in data usage. Moreover, Vanhelleputte addressed the changing revenue landscape, emphasizing the declining importance of voice revenue and the growing significance of mobile money and mobile data for MTN Uganda. He projected that in the next few years, revenue contributions from mobile money, mobile data, and mobile voice would balance around 30-35% each. Furthermore, the CEO discussed the company's strategic shift towards a platform business model and the rebranding efforts to reflect this evolution. He highlighted MTN's investments in network infrastructure, including a $300 million injection into network development to prepare for future data traffic growth as the company aims to meet the increasing demands for data services in Uganda. Vanhelleputte also provided insights on the company's dividend payouts and reinvestment plans, indicating a focus on network expansion and data capacity to drive future revenue growth. Additionally, he shared the company's vision for Ayoba, MTN's digital platform, aiming to position it as the 'WeChat of Africa,' offering a comprehensive digital lifestyle experience for users. Looking ahead to 2022, MTN Uganda's outlook includes a target of at least 10% growth in top-line revenue and a 20% increase in bottom-line performance to ensure stakeholder satisfaction and continued success. With a focus on leveraging digital technologies and network investments, MTN Uganda is poised to navigate the evolving telecommunications landscape in Uganda and drive growth in the coming years.