The increasing use of data and mobile money services has supported MTN Uganda’s profitability stance in the market, the telecom’s 2013 financial results show.
The results released in Kampala on Monday show the telecom’s revenue grew 17.9 per cent in the year ended December 2013, to Shs1.18 trillion from Shs1 trillion the previous year, supported by strong growth in data service and mobile money transfer income.
MTN Uganda CEO Mazen Mroue said revenue from data services increased by 51.7 per cent while the mobile money platform recorded a 47 per cent increase in registered subscribers to 5.2 million, from 3.5 million in 2012, with an estimated 25 million transactions monthly.
As a result, mobile money revenue grew to Shs146.6 billion last year from Shs86 billion in 2012, while data revenue increased to Shs76.04 billion from Shs64 billion in 2012 due to increased use of data-driven social media platforms for communication .
Mr Mroue attributed data revenue growth to an expanded 3G network, value added services and enhanced marketing while growth in mobile money transactions was attributed to usage of wider mobile money payment product range.
The increased use of data-driven social media platforms for communication saw the telecom’s SMS revenue decline by 3.5 per cent to Shs24.76 billion from Shs26.9 billion in 2012, according to the telecom’s chief marketing officer Ernst Fonternel.
Data significantly contributes to telecommunication companies’ revenues in the world over as revenue from the voice segment flattens due to strong competition and lower tariffs.
Unlike in 2012 when the telecom’s subscriber base grew by only 1 per cent to 7.7 million due to the SIM card registration, MTN’s subscriber base grew by 14.4 per cent last year to 8.8 million supported by strong promotions segmented offerings and continued access to MTN zone.However, the telecom posted bad results in South Africa where it is headquartered, with a decline in customers.
SOURCE: Daily Monitor