MTN Uganda has reported resilient performance in the first half of 2025, with robust growth in data and fintech revenues helping to lift service revenue by 13.3% to Ush 1.7 trillion.
The company grew its customer base and expanded its network, but profit after tax dipped 9.7% to Ush 266.9 billion due to a once-off tax settlement with the Uganda Revenue Authority.
The interim results, covering the six months ended June 30, 2025, reveal that the telecom giant’s revenue streams are shifting sharply towards high-growth segments, even as traditional voice income remains largely flat.
Data and Fintech Lead Revenue Growth
Data revenue surged by 31.3% year-on-year to Ush 490.2 billion, driven by a 23.4% jump in active data subscribers to 10.8 million.
Increased adoption of MTN’s targeted data propositions, device financing offers, and the performance of its Kabode Supa smartphone programme helped boost data traffic by 42.6% and usage per subscriber by 15.6%. Data now contributes 28.8% of service revenue, up from 24.8% a year ago.
Fintech revenue grew 18.6% to Ush 524.6 billion, supported by strong performance in MTN MoMo services. The platform handled 2.4 billion transactions up 20.3% with the total value rising 28.7% to Ush 89.3 trillion.
Basic mobile money services such as peer-to-peer transfers and cashouts recorded steady growth, while advanced services revenue climbed 26.1% on the back of products like MoMo Advance lending and the recently launched Virtual Card with Mastercard.
Fintech now accounts for 30.8% of MTN Uganda’s service revenue, reinforcing its position as a key growth engine alongside data services.
Subscriber Growth and Network Expansion
The company’s customer base grew by 10.2% to 22.8 million, with active data subscribers rising 23.4% to 10.8 million and fintech users increasing 6% to 13.3 million a clear indication of the growing importance of digital financial services across customer segments.
According to Sylvia Mulinge, Chief Executive Officer of MTN Uganda, “We are encouraged by the trust our customers continue to place in MTN. Our continued investment in network expansion, improved access, and service quality is driving both performance and meaningful impact.”
This investment increased MTN’s population coverage to 88.2% for 4G and 19.0% for 5G, while also extending its fibre network footprint by 52.9% to 18,510 kilometres. Home broadband subscribers rose 59.2% year-on-year.
Capital expenditure (excluding leases) stood at Ush 219.7 billion, representing a capex intensity of 12.8%. Network investments were supported by recent infrastructure-sharing agreements with Airtel, aimed at improving broadband reach.
Operational Efficiency and Earnings
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 17.8% to Ush 924.2 billion, with the EBITDA margin expanding by 2.2 percentage points to 53.7%.
This was attributed to cost discipline, operational efficiency initiatives that saved Ush 39.3 billion, and a stable macroeconomic environment with headline inflation averaging 3.6%.
Operating profit (EBIT) rose 21.8% to Ush 664.6 billion, and profit before tax increased 28.1% due to contained costs and higher operating income.
However, the company’s bottom line was hit by a Ush 110.9 billion tax settlement related to a transfer pricing audit covering 2012–2024, reducing profit after tax by nearly 10%.
Without this one-off charge, adjusted profit after tax would have been Ush 377.9 billion, up 27.8% year-on-year.
Shareholder Moves and Dividend Declaration
A major strategic milestone during the half-year was shareholder approval for the structural separation of MTN Uganda’s fintech business from its core connectivity operations.
The decision, supported by 99.9% of votes at an extraordinary general meeting on July 22 2025, is aimed at unlocking growth and value in both segments.
Reflecting its strong free cash flows and balance sheet, MTN Uganda declared its first interim dividend for 2025 of Ush 10.0 per share, amounting to Ush 223.9 billion.
The book closure date is set for September 1, with payment scheduled for September 19.
Regulatory and Market Context
MTN Uganda narrowly missed its National Telecom Operator licence requirement to cover 90% of Uganda’s geographical area by June 30 2025, reporting 84% coverage.
The company is engaging with the Uganda Communications Commission for an extension to meet the target.
From a macroeconomic standpoint, the Ugandan shilling appreciated 2.4% year-to-date against the US dollar, supported by remittances and export receipts. The key policy rate remained at 9.75%, while GDP growth for FY 2024/25 reached 6.3%.
The Outlook
Looking ahead to the second half of 2025, MTN Uganda expects continued momentum in data and fintech revenue growth, with further investments in network quality, coverage, and product innovation.
New fintech offerings, including the “Yinvesta” micro-investment product and “Cover by MoMo” insurance in partnership with Sanlam, are expected to deepen financial inclusion and expand the customer base.
The company maintains its medium-term guidance of “upper-teens” service revenue growth, stable EBITDA margins above 50%, and capex intensity in the low teens.
In summary, MTN Uganda’s H1 2025 performance shows a telecom operator actively transitioning towards a data-and-fintech-led growth model, with strong revenue gains in these areas offsetting slower voice growth.
Despite the profit impact from a one-off tax settlement, the business remains cash-generative, shareholder-focused, and well-positioned for further expansion in the evolving Ugandan digital economy.
