Guinness Tech Limited saw weak financial performance during 2024 as the company behind SafeBoda's mobile money services struggled with falling income. The Uganda-based technology firm earned 383.3 million shillings, down from 420.4 million shillings during 2023. This marks the second straight year of poor revenue growth for the digital payments company. Competition and rising costs hurt the business as urban transport services faced pressure. The 8.9 percent decline shows how difficult market conditions have become.
Company profits did improve slightly despite the revenue problems. Net earnings after taxes reached 99.5 million shillings compared with 34.1 million shillings the previous year. Management cut operating costs to 165.9 million shillings from 216.9 million shillings during the same period. Other expenses also fell to 37.2 million shillings from 86.4 million shillings. However, profit margins remain very thin for a major player in Uganda's digital finance sector.
The company's balance sheet shows continued strain as total assets fell to 2.26 billion shillings from 2.70 billion shillings. High debts of 1.75 billion shillings create cash flow challenges for daily operations. External auditor RSM Eastern Africa found no problems with the financial records during their June review. Bank of Uganda approved the results after directors signed off on the statements during May. The cautious outlook suggests more difficult times ahead without stronger revenue growth.
Company profits did improve slightly despite the revenue problems. Net earnings after taxes reached 99.5 million shillings compared with 34.1 million shillings the previous year. Management cut operating costs to 165.9 million shillings from 216.9 million shillings during the same period. Other expenses also fell to 37.2 million shillings from 86.4 million shillings. However, profit margins remain very thin for a major player in Uganda's digital finance sector.
The company's balance sheet shows continued strain as total assets fell to 2.26 billion shillings from 2.70 billion shillings. High debts of 1.75 billion shillings create cash flow challenges for daily operations. External auditor RSM Eastern Africa found no problems with the financial records during their June review. Bank of Uganda approved the results after directors signed off on the statements during May. The cautious outlook suggests more difficult times ahead without stronger revenue growth.
