CFO Andrew Bugembe expects monetary policy, inflation to stabilise

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MTN Uganda CFO Andrew Bugembe believes that monetary policy and decreasing global inflation will keep inflation levels to around 5 percent in the third quarter - and augment the telecommunication provider’s performance.

MTN Uganda CFO Andrew Bugembe believes that monetary policy and decreasing global inflation will keep inflation levels to around 5 percent in the third quarter - and augment the telecommunication provider’s performance.

This was noted during a news conference announcing MTN Uganda’s half-year financial results, which showed an 18 percent increase in profit after tax to Shs228bn in the first six months of 2023 compared to Shs193bn for the similar period last year.

Inflation during the first half of 2023 averaged 8 percent, compared to 4.6 percent in the first half of 2022.

Andrew said, “Our overall revenue growth of 15.8 percent was in line with our medium-term target, with a resilient performance in voice and a double-digit growth in our data and fintech revenues. That said, the effects of heightened inflation drove cost pressures upwards, which we mitigated through expense efficiencies. This supported the expansion in our earnings by 16.8 percent and our margin by 0.4pp to 50.6 percent."

In the company’s unaudited financial statements for the six months ended June 2023, MTN Uganda CEO Sylvia Mulinge said, “During the first half of 2023, we delivered a resilient performance in uncertain and evolving local and global macroeconomic conditions.”

Locally conditions included improved shilling stability and receding food, fuel and utility prices over the six months, while the interest rate environment remained relatively stable with the policy rate fixed at 10 percent in the period under review, she added.

Against this backdrop, MTN Uganda’s service revenue growth of 15 percent was in line with its medium-term target, bolstered by double-digit growth in data and fintech revenues.

In the first half of the year, voice revenue increased by 9.4 percent to Shs544bn, net subscribers increased by 910,000 customers to 18.1 million and data revenue increased by 22.1 percent to Shs290bn.

Sylvia also noted that on the fintech front, efforts were directed towards digitalisation of customer value chains to drive cashless payments with MoMo Pay and enhancements
in international remittances portfolio to support borderless payments in key trade markets.

“This has augured well for our advanced revenue contribution growing to 26.3 percent in line with our medium-term objectives,” she said.

MTN Uganda celebrates its 25-year anniversary this year.

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