MTN Uganda posts strong revenue growth, despite profit dip from tax settlement
A major strategic milestone was shareholder approval for the structural separation of its fintech and connectivity businesses, aimed at unlocking value and accelerating growth in the mobile money ecosystem.
MTN Uganda has posted robust operational and revenue growth for the first half of 2025, even as a one-off tax settlement dented its bottom line. The telecom giant reported a 13.3% year-on-year rise in service revenue to Ush 1.7 trillion, driven by surging data and fintech segments, while EBITDA climbed 17.8% to Ush 924.2 billion, boosting margins to 53.7%.
The standout performer was data, which grew 31.3% to Ush 490.2 billion on the back of affordable data plans, expanded 4G/5G coverage, and a 23.4% increase in active data subscribers. Fintech revenue rose 18.6% to Ush 524.6 billion, buoyed by a 28.7% jump in mobile money transaction value to Ush 89.3 trillion. Voice revenue, however, remained flat at Ush 629 billion, constrained by regulatory cuts to mobile termination rates.
Despite the strong top-line momentum, profit after tax fell 9.7% to Ush 267 billion due to a Ush 110.9 billion tax settlement with the Uganda Revenue Authority over a transfer pricing audit spanning 2012–2024. Adjusted for this, underlying profit jumped 27.8% and return on equity rose to 59.4%.
MTN continued to strengthen its balance sheet, lowering leverage to 0.7x and reducing net debt by 12.7% to Ush 1.3 trillion. Capital expenditure, excluding leases, stood at Ush 219.7 billion, focused on network densification, fibre expansion, and rural broadband reach, though the company fell short of its 90% national geo-coverage obligation, achieving 84%.
A major strategic milestone was shareholder approval for the structural separation of its fintech and connectivity businesses, aimed at unlocking value and accelerating growth in the mobile money ecosystem.
The board declared an interim dividend of Ush 10 per share, worth Ush 223.9 billion, payable on 19 September 2025. Looking ahead, MTN reaffirmed its medium-term targets of “upper-teens” service revenue growth, EBITDA margins above 50%, and low-teens CAPEX intensity.
With Uganda’s economy projected to grow steadily and consumer demand for data and fintech services rising, MTN Uganda’s challenge will be sustaining momentum in a competitive market while meeting regulatory obligations.
