MTN Uganda’s profit after tax drops by 9.7%, subscribers increased to 22.8M in H1’25

MTN Uganda has recorded a 9.7% year-on-year drop in its profit after tax (PAT) to Ush 267 billion. The company also posted a 10.2% growth in subscriber base to 22.8 million for the first half of 2025.  

According to the financial results made available on the Uganda Securities Exchange, MTN Uganda attributed the drop in PAT to a 115% increase in tax payment on account of a once-off settlement following an assessment by the Uganda Revenue Authority (URA). This resulted in a reduction in PAT by 9.7% to Ush 267 billion and a profit margin by 3.9 percentage points to 15.5%.

However, the adjusted profit after tax was up by 27.8% from Ush 377.9 billion to Ush 295.7 billion. According to the telecom operator, the adjusted PAT excludes the impact of the once-off tax settlement of Ush 110.9 billion relating to a transfer pricing audit for the period 2012 to 2024.

For the first six months of the year, MTN Uganda saw its total revenue increase by 13.19% YoY to Ush 1.72 trillion from Ush 1.52 trillion. Also, service revenue consisting of data, voice and fintech was up by 13.3% YoY from Ush 1.5 trillion to Ush 1.7 trillion. 

Reacting to the financial result, MTN Uganda CEO, Sylvia Mulinge, noted that the first-half result reflects a strong execution in a challenging operating environment with headline inflation averaging 3.6% in the period, compared to 3.4% in H1 2024. 

On a positive note, the Ugandan shilling gained 2.4% against the US dollar, supported by increased remittance inflows and export receipts. 

“MTN Uganda’s first-half results reflect the solid momentum in our key commercial and financial metrics. This outcome was achieved against a challenging operating context characterised by changes in mobile termination rate (MTR) regulations, which impacted our voice revenue, as well as the settlement of a tax liability, which had an adverse effect on our bottom line,” the CEO said in the financial results. 

MTN Uganda also revealed that EBITDA (Earnings before interest, tax, depreciation and amortisation) during the period under review increased by 17.8% YoY to Ush 924.2 billion from Ush 784.6 billion. EBITA margin was also up by 21.8% from USh 664.6 billion to Ush 545.5 billion. 

Also Read: MTN Group to report strong growth in H1’25 financial period.

While MTN Uganda continues to solidify leadership in a market that includes Airtel Uganda, Roke Telkom, Smile Communications, and others, its subscriber base was up by 10.2% to 22.8 million. 

The company attributed the increase to investment in network expansion that saw a rollout of 355 sites to expand connectivity. This increased its 4G population coverage to 88.2% (compared to 87.8% in H1 24) and that of 5G to 19.0% (compared to 15.3% in H1 24).

Data and Voice Revenue

During the first six months of the year, MTN Uganda saw a 31.3% YoY increase in data revenue from Ush 373.2 billion to Ush 490.2 billion. The active subscriber base also increased by 23.4%, which drove data traffic growth of 42.6%, with increased MB per subscriber growth of 15.6%.

The telecom operator’s voice revenue increased by 0.4% YoY from Ush 626.7 billion to Ush 628.9 billion, attributed to lowering incoming voice revenue due to lower Mobile Terminal Rates (MTRs). 

MTN Uganda’s outgoing voice revenue grew by 4.7% and a refreshed voice proposition with enhanced bundle offering supported the company’s 10.2% growth in mobile subscribers to 22.8 million. 

Fintech revenue increased by 18.6% YoY to Ush 524.6 billion from Ush 442.3 billion, owing to a solid growth in its mobile money business. MTN Uganda said transaction volume rose by 20.3% to 2.4 billion and transaction value by 28.7% to Ush 89.3 trillion in the period, reflecting the strong expansion of its fintech ecosystem. 

Recall that the company recently received shareholder approval in the Extraordinary General Meeting held on 22 July 2025 to proceed with the implementation of the proposed structural separation of MTN MoMo from MTN Uganda. 

While the entire service revenue was US$1.7 trillion, data contributed 28.8% (24.8% in H1 24) to service revenue, voice contributed 36.9% (41.6% in H1 24), and fintech saw a 30.8% contribution (29.4% in H1 24). 

Outlook for H2 2025

MTN Uganda projected an improved financial result for the second half of the year. With the Ugandan economy inflation rate pegged between 4.5% to 5% and the shillings expected to perform better, the company is confident of a positive momentum in service revenue anchored by the growing demand for data services.

“As we progress into H2, we are confident that our business is well-positioned to deliver on our growth ambitions in both the connectivity and fintech businesses,” the company said. 

The telecom operator will also leverage partnerships to support advanced revenue growth. This follows the launch of two products: Yinvesta, a micro investment vehicle allowing subscribers to invest and earn competitive daily interest and Cover by MoMo for insurance.

“We will prioritise investment in the core network, focusing on quality and stability to drive both voice and data traffic,” MTN Uganda added.