According to information revealed in the telecom’s financial reports, MTN has Shs959.9 billion in mobile money deposits as of December 20, 2021.
This was an increase of more than Shs304.6 billion over the Shs655.3 billion held by telecom in the same period in 2020.
It is the first time MTN has provided information about its mobile money business, which was transferred to the Bank of Uganda last year.
The National Payment Systems Act demands that mobile money, which is primarily a financial function, be kept apart from telecommunications services.
As a result, under the law, MTN, like other carriers that conduct mobile money operations, is compelled to report financial information.
MTN said that the mobile money company made a profit of Shs89.8 billion over time, indicating the rising importance of mobile money in the overall business.
According to the financial figures, the Shs89.8b provided a 26.3 percent part of MTN’s gross earnings, which stood at Shs340.4b over the time.
Direct network operating costs, other operating expenses, employee benefits, selling distribution and marketing expenses, increase in trade receivables impairment, depreciation and impairment of property, plant, and equipment and right-of-use assets, and amortisation of intangible assets are all factored into the financial results.
MTN said that assets linked to the mobile money business totaled Shs1.06 trillion during the quarter, accounting for 32.3 percent of the telecom’s overall assets of Shs3.29 trillion.
Mobile money is presently one of MTN’s main income generators, and it is expected to expand even more as the business engages in various financial innovations permitted by the National Payment Systems Act.
MTN stated that cash earned from operations was Shs167.3b during the period, while operational activities generated Shs69.2b.
Property and equipment payments totaled Shs517 billion, while intangible asset purchases totaled Shs1.2 trillion.
Taxation on earnings
According to the MTN financial results, mobile money income tax expense was Shs38.3 billion, while net cash spent in various operations was Shs12.58 billion.
Provisioned Shs665 billion for unforeseen events in the fiscal year ending December 2021, while exchange rate losses were Shs80 billion.
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