Kampala, Uganda – March, 2013
MTN Uganda celebrates strong annual results for the year 2012 reflected by positive revenue, Data and Mobile Money growth
About MTN Uganda
About the MTN Group
Launched in 1994, the MTN Group is a leading emerging market operator, connecting subscribers in 22 countries in Africa and the Middle East. The MTN Group is listed on the JSE Securities Exchange in South Africa under the share code: “MTN.” As of 31 December 2012, MTN recorded almost 190 million subscribers across its operations in Afghanistan, Benin, Botswana, Cameroon, Cote d’Ivoire, Cyprus, Ghana, Guinea Bissau, Guinea Republic, Iran, Liberia, Nigeria, Republic of Congo (Congo Brazzaville), Rwanda, South Africa, Sudan, South Sudan, Swaziland, Syria, Uganda, Yemen and Zambia. Visit us at www.mtn.com and www.mtnfootball.com
MTN Uganda delivered strong results in a competitive market with Revenue up 16% and EBITDA up 22%. Data revenue increased 86% supported by a strong performance in MTN Mobile Money. With more than 20 million transactions each month; MTN Mobile Money now contributes meaningfully to MTN Uganda’s revenue. As per the GSMA 2012 Global Mobile Money Adoption survey, MTN Uganda ranks 2nd in terms number of active Mobile Money customer accounts. MTN Uganda also concluded the tower transaction with ATC during 2012, which saw the business sell 962 towers to ATC. This transaction will have a positive impact on Infrastructure sharing and improve operational efficiencies for the ICT Sector in Uganda
The MTN Group results that were released on Wednesday 6th March, 2013 by the MTN Group President and CEO- Sifiso Dabengwa, clearly highlighted MTN Uganda’s positive results. MTN Group is the leading emerging market mobile operator, connecting almost 190 million subscribers in 22 countries across Africa and the Middle East. MTN is at the forefront of global technological changes, delivering a bold, new Digital World to our customers.
This morning, at the official announcement of the MTN Uganda performance, the MTN Uganda Chief Executive Officer- Mazen Mroué also shared with key stockholders and media officials the new MTN Brand Vision. “To Lead the delivery of a bold, new Digital World to our customers”. This will mean a focus on creating a distinct customer experience, driving sustainable growth while transforming the operational model. Our new MTN mission is ‘To make our customers’ lives a whole lot brighter’, Mroué added.
In a highly competitive environment, with seven network operators, MTN Uganda maintained its leading position in subscriber numbers and market share. By year end, MTN had 7.7 million subscribers and total market share of 52.5%, up from 52.0% in 2011.
In 2013 MTN Uganda’s value proposition is solid; the groundwork has been established to increase the contribution of Data and Mobile Money to overall revenues. In the year ahead, MTN Uganda will roll-out LTE and increase WiFi hotspots coverage, to continue giving Ugandans World-class and universal access to the internet and Mobile Money Services focusing on person-to-business and person-to-business financial transactions.
Today’s announcement coincides with the launch of another innovative first in Uganda as MTN Uganda launches its upgraded 42 Mbps Data Network. This attests to the new MTN Brand Vision and Mission and shows that MTN is indeed embracing the new Digital World only a few months after the successful launch of its World-class Internet campaign enabling Uganda customers to enjoy faster Internet access, download and superior quality live streaming.
Over the last two years, MTN has made major investments to its data infrastructure in Uganda. MTN Uganda launched the first mobile money service in Uganda with tremendous success, introduced 3G+, expanded the mobile distribution foot print, and greatly enhanced the mobile core, radio capacity and infrastructure technology. Furthermore, it extended the fibre network backbone and built five regional switching centres in the East, West, North and Central regions.
At the time of this launch, the MTN Uganda Chief Marketing Officer- Ernst Fonternel said, “We have further improved and widened our 3G+ network coverage to deliver the newly improved speed to more than 1 million data customers supported with the widest network coverage, a wide range of devices and affordable tariffs”.
This shows MTN Uganda’s commitment to consistently invest in the network through a significant focus on infrastructure investment. “This investment is aimed at providing our customers with the best possible user experience across the Country. We are happy that we shall now be able to provide our customers with this world-class internet that promises speed, convenience, coverage and affordability,” said Fonternel.
The MTN Uganda annual results show a marked improvement in the overall performance of the MTN Group. Announcing the MTN Group annual results, the MTN Group President and CEO-Sifiso Dabengwa said, “We are pleased to announce MTN’s results for the year ended 31 December 2012, which notwithstanding significant challenges, reflect solid progress in growing subscribers, revenue and EBITDA. The year was characterised by the continued global economic slowdown, increasingly competitive mobile markets as well as regulatory and political challenges. The new MTN Group structure, put in place in early 2012, which sees the business split into key pillars, namely South Africa, Nigeria and the ‘Large and Small Opco Cluster’, has enabled more focused management and better execution of strategies across the various business units,” Dabengwa added.
Over the past year, MTN Group subscribers increased 15.1% to 189.3 million, a strong result in the face of the ongoing subscriber registration requirements and network challenges in key markets. The low levels of mobile penetration across our markets should support continued strong subscriber growth.
MTN Group overall Revenue for the year increased 10.9%, with the majority of MTN operations delivering strong organic growth. Group EBITDA increased 8.2% with an EBITDA margin of 42.9%. Encouragingly a margin improvement across the majority of the Large Opco Cluster was seen with organic growth in EBITDA of 20.7%.
After a challenging 2012, the MTN Group is well positioned for 2013. It expects to deliver continued organic growth in both revenue and EBITDA and anticipate reaching the milestone of 200 million subscribers by mid-year.