Data, mobile money cushion  fall in MTN’s voice revenues

Ms Sylvia Mulinge. Photo / File 

What you need to know:

  • According to MTN, increase in revenue was supported by continued growth in data and Fintech segments, which posted double digit growth for the third quarter ended September. 

Data and revenues from Fintechs such as mobile money cushioned MTN’s reduction in voice earnings, registering an 11.5 percent growth in revenues to Shs1.667 trillion.  

In details contained in the telecom’s financial results, MTN indicated that the increase in revenue was supported by continued momentum in data and Fintech segments, which posted double digit growth for the third quarter ended September. 

However, MTN noted, voice revenues declined by 2.3 percent, which was an improvement from the 3.5 percent drop posted during the second quarter. 

The growth, the report shows, was supported by growth in subscriber number, which during the three months, grew by 400,000 to 16.7 million, representing a 9.2 percent growth. 

Active Fintech users increased by 19.4 percent to 10.6 million while Fintech revenue grew by 23.2 to Shs470.4b with net additions standing at 809,000. 

In notes published along the results, Ms Sylvia Mulinge, the MTN chief executive officer, said the revamped mobile money drive, which seeks to increase cashless transactions had aided growth in Fintech subscriber transactions, whose value grew by 36.7 percent year-on-year to Shs54.4 trillion.   

Data revenue grew by 29.8 percent to Shs369.2b due to sustained growth in active data users by 28.8 or 300,000 additions as well as improved internet propositions and network quality. 

“Our aggressive investment in the 4G network led to an increase in our 4G population coverage to 77.4 percent. Data traffic on the network recorded an increase of 42.4 percent, of which 61.2 percent was carried on the 4G network,” Ms Mulinge said, noting that earnings before interest, tax depreciation, and amortization (EBITDA) grew by 9.5 percent to Shs852.5b.

Capital expenditure, excluding right of use of assets, increased by 20 percent to Shs276.7b with capex intensity remaining within target at 16.5 percent. 

Profits increased by 21.0 percent to Shs292.7b, which in conformity with its policy, approved a second interim dividend payments of Shs5.4 per share or a Shs120.9b pay out. 

However, Ms Mulinge indicated that emerging trends signal a tougher macroeconomic environment ahead but the telecom is confident to adapt, focusing on cost management and sustained improvement in customer propositions.

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