KAMPALA, UGANDA – Uganda Telecom has embarked on a Business Transformation and Turnaround Strategy to affirm its position as Uganda’s largest fixed line network and only indigenous telecom company.
UTL’s Managing Director David Holliday was appointed by the LAP Green (the Libyan government majority shareholder) at the end of the second quarter of 2012 to implement the turnaround.
According to company sources, since his appointment, UTL has already seen an improvement in business performance, including a significant reversal of the previous decline in financial perfomance, as well as the introduction of international standards across the organisation.The second half of 2012 saw a significant improvement in performance with second half revenues and up by 9% and 46% respectively compared to the first half of the year.
The improved financial performance of the company was a result of increasing subscriber numbers by 17% from June 30 to December 31, 2012 and improving the cost base towards levels in line with international best practice. This has lead to a 54% EBITDA improvement compared to financial year 2011.
An approximate measure of a company’s operating cash flow based on data from the company’s income statement. Calculated by looking at earnings before the deduction of interest expenses, taxes, depreciation, and amortization.
According to a company statement, ‘The turnaround strategy has involved benchmarking the company against international standards of ethics, corporate governance and accounting, and enhancing operational efficiency.
“We have embarked upon a multitude of changes to the way that UTL operates. We are investing in new equipment and automation which, combined with new processes, will create improved efficiency in the network countrywide,’ the statement reads in part.
UTL revealed that it is rolling out new products in the fixed line, mobile and internet lines of the business in coming weeks.
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