MTN Uganda’s profit after tax increased by 20.6 percent to Ush 180.9 billion, with an improved margin of 21.3 percent (up 1.3pp) in the first quarter of 2025, compared with Ush 150 billion generated in the first quarter of 2024.
The company’s Q1 2025 total revenue grew by 13 percent to Ush 847.9 billion from Ush 750.5 billion in Q1 2024.
The period saw a 32.5 percent increase in data revenue, driven by a 19.4 percent increase in daily active users to 10.2 million, which translates into 1.7 million net additions year over year.
Over the period, data traffic increased 33.7 percent YoY as the average MB per user increased by 12 percent. In order to accommodate devices that are enabled, it started testing VoLTE (voice over LTE).
As more homes were connected, it saw a significant increase in revenue in home broadband. It was able to expand its customer base by delivering high data speeds of up to 500 Mbps at reasonable costs as part of its value proposition.
The contribution of data revenue to service revenue increased by 4 percentage points to 28 percent (Q1 24: 24 percent), continuing its upward trend.
Lower inbound voice revenue as a result of the industry-wide MTR review contributed to the 1.5 percent increase in voice revenue. But because more people were using its upgraded all-network bundles, the lower prices led to a 16.5 percent increase in its voice traffic, which lessened the impact of the MTR cuts.
Its continued momentum in customer acquisition and the increased investment in network coverage further solidified this position, resulting in a 14.6 percent YoY increase in its subscriber base of 2.9 million. During the period, its outgoing voice revenues increased by 11.9 percent thanks to its robust growth and strict CVM.
The contribution of voice revenue to service revenue decreased by 4.5 percentage points to 38 percent (Q1 24: 42.5 percent) in favour of fintech and data.
The growth in its content revenue and its video streaming subscriptions due to the increased use of the My MTN app drove a 23.5 percent increase in digital revenue. At 0.4 percent (Q1 24: 0.4 percent), digital’s share of service revenue stayed constant.
Fintech revenue grew by 18.4%
Due to a 19 percent increase in its mobile money services, fintech revenue grew by 18.4 percent. Increased ecosystem velocity served as the foundation for this growth, as the volume of transactions increased 19.9 percent to 1.2 billion (Q1 24: 1.0 billion).
As a result, the value of the transaction increased by 23.9 percent to reach Ush 42.0 trillion (Q1 24: 33.9 trillion). Additionally, the increased number of active agents and merchants (212,044 and 100,985, respectively) was indicative of its ecosystem’s growth.
Basic revenue increased by 15.9 percent and advanced revenue by 33.4 percent as a result of this increased activity.
The loan and savings marketplace, as well as updated campaigns to boost payments, benefited its advanced services. The advanced revenue contribution increased to 34.1 percent as a result (Q1 24: 30.9 percent).
The percentage of service revenue from fintech climbed by 1.3 percentage points to 30.4 percent (Q1 24: 29.1 percent).
EBITDA grew by 13.7%
Due to a strong revenue performance and a moderate 12.2 percent cost growth, EBITDA grew 13.7 percent year over year. Its cost of sales improved as a result of the MTR The reduction also benefited the business by lowering interconnect costs. 52.4 percent was the improvement of 0.4 percentage points in the EBITDA margin.
As a result of the higher investment in network sites, lease costs drove a moderate 7.8 percent increase in depreciation and amortisation. There was a 1 percent increase in net finance costs, which was partially offset by the period’s currency appreciation.