MTN Uganda has announced a robust 13% growth in revenue for the first half of 2025, despite facing a substantial tax settlement that affected its overall profitability. The company’s ability to expand its core business operations amidst significant fiscal obligations highlights its resilience and strong market position in Uganda’s competitive telecommunications sector.
The telecom giant posted an additional Shs 222 billion in revenue, driven largely by impressive gains in data services and fintech offerings. These areas have become pivotal to MTN Uganda’s growth strategy, reflecting the increasing demand for digital connectivity and mobile financial solutions in the country.
However, this strong revenue performance was tempered by hefty tax payments totaling Shs 681 billion in the same period. Notably, MTN Uganda settled a one-off tax liability with the Uganda Revenue Authority (URA) amounting to over Shs 110 billion. This settlement, combined with regular tax obligations, contributed to a nearly 10% decline in profit after tax, which stood at Shs 110.9 billion.
Despite this dip in profitability, the underlying business fundamentals remain healthy. Excluding the one-time tax settlement, MTN Uganda’s profit after tax surged by 27%, reaching Shs 377 billion. This indicates the company’s operational efficiency and sustained growth trajectory amid external fiscal pressures.
MTN Uganda’s Chief Executive Officer, Sylvia Mulinge, emphasized the role of data services in driving revenue growth. Data revenue rose by 31% to Shs 490 billion, supported by a 10% increase in the subscriber base to 22.8 million customers. Active data users grew to 10.8 million, reflecting broader internet penetration and increased digital consumption across Uganda.
Fintech services also contributed to the company’s positive performance, with a 6% growth bringing the total number of users to 13.3 million. This segment is crucial as mobile money and digital financial services continue to transform Uganda’s economy, providing convenient access to banking and payment solutions for millions.
In recognition of its financial health and shareholder value, MTN Uganda declared an interim dividend of Shs 10 per share, amounting to Shs 223.8 billion, payable on September 19, 2025. This move underscores MTN’s commitment to rewarding its investors even in a challenging fiscal environment.
The company also invested heavily in network expansion, committing Shs 219 billion toward deploying 355 new sites to boost both 4G and 5G coverage. The enhanced infrastructure has resulted in increased 4G coverage from 87% to 88%, and 5G coverage growing significantly from 15% to 19%, ensuring better connectivity and service quality for Ugandan customers.
Despite the challenges posed by major tax settlements, MTN Uganda’s strong revenue growth, expanded customer base, and strategic investments affirm its position as a market leader. The company’s performance offers confidence to shareholders and signals ongoing progress in Uganda’s digital transformation journey.