MTN mobile money deposits grow to Shs959.9b

Customers at a mobile money kiosk in Kampala. PHOTO | FILE

What you need to know:

  • According to details in the MTN financial results, mobile money income tax expense stood at Shs38.3b, while net cash invested in various activities stood at Shs12.58b.

MTN held Shs959.9b in mobile money deposits for the period ended December 2021, according to details published in the telecom’s financial results. 

This was an increase of more than Shs304.6b from Shs655.3b the telecom held in the same period in 2020. 

It is the first time MTN has published details of its mobile money business, whose regulation was last year moved to Bank of Uganda. 

Under the National Payment Systems Act, the law requires that mobile money, which largely is a financial function, is separated from telecommunications services. 

Therefore, under the law, MTN, just like other telecoms that operate mobile money businesses, are required to publish details of their financial position. 

During the period, MTN noted, the mobile money business registered a profit of Shs89.8b, which signals the growing strength of mobile money on the entire business.

The Shs89.8b, according to the financial results, contributed a 26.3 percent share of MTN’s gross profits, which during the period stood at Shs340.4b.  

The financial results take into account direct network operating costs, other operating expenses, employee benefits, selling distribution and marketing expense, increase in impairment of trade receivables, depreciation and impairment of property, plant and equipment and right-of-use assets and amortisation of intangible assets.     

During the period, MTN said, assets attributed to the mobile money business stood at Shs1.06 trillion, which was a 32.3 percent contribution to the  telecom’s Shs3.29 trillion total assets. 

Mobile money is currently one of MTN’s largest revenue earners and is projected to grow further as the company engages in different financial innovations provided for under the National Payment Systems Act.

During the period, MTN indicated, cash generated from operations stood at Shs167.3b while Shs69.2b was generated from operating activities. 

Payments for property and equipment stood at Shs517b while purchase of intangible assets stood at Shs1.2 trillion.  

Income tax           
According to details in the MTN financial results, mobile money income tax expense stood at Shs38.3b, while net cash invested in various activities stood at Shs12.58b.

During the period ended December 2021 provisioned Shs665b to cater for unplanned eventualities while exchange rate losses stood at Shs80b.      

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