MTN Uganda Reports 29.6% Increase in Profit After Tax

MTN Uganda has announced a significant 29.6% year-on-year increase in profit after tax, totaling Shs 459.4 billion for the nine months ending September 30. This impressive growth is largely attributed to strong performance in the company’s data and fintech segments, aligning with MTN Uganda’s commitment to digital and financial inclusion.

Service revenue rose by 20.1% year-on-year, reaching Shs 2.31 trillion, driven by a 30.1% increase in data services and a 23.5% rise in fintech services. MTN Uganda’s CEO, Sylvia Mulinge, credited the robust growth to the company’s strategic focus on expanding high-demand services and improving operational efficiencies.

“Our substantial growth in profit and service revenue highlights MTN Uganda’s role as a leader in Uganda’s digital transformation journey,” said Mulinge. “By focusing on our data and fintech verticals and investing in network quality, we have managed to expand access to digital and financial services for millions of Ugandans, while also enhancing profitability.”

The company’s subscriber base grew by 13.3% to 21.6 million, with data subscribers increasing by 24.1% and fintech users by 13.2%. This expansion was supported by sustained investment in 4G and the launch of 5G services, providing customers with faster, more reliable connectivity.

MTN Uganda invested Shs 297.9 billion in capital expenditure to expand its network footprint and improve service quality. This investment facilitated the rollout of 5G and increased 4G coverage from 83.7% to 87.9%, as well as the extension of the fiber network across the Kampala metropolitan area and key upcountry regions.

“Our investment in digital infrastructure is foundational to delivering a superior customer experience and driving Uganda’s digital economy,” Mulinge noted. “By expanding 4G and launching 5G, we are empowering Ugandans with faster and more reliable connectivity, essential for economic growth and innovation.”

MTN Uganda’s data revenue growth of 30.1% was driven by a 24.1% increase in data subscribers to 9.3 million and a rise in data usage per customer. The company’s device financing strategy also helped increase smartphone penetration, contributing to a 48.5% rise in data traffic.

“Data and fintech are key drivers of MTN Uganda’s growth, and we’re thrilled to see how these services are positively impacting our subscribers,” Mulinge added. “By making mobile and digital services accessible and affordable, we’re enhancing connectivity and enabling financial empowerment across Uganda.”

Fintech revenue increased by 23.5%, driven by rising mobile money adoption and transaction volumes. Total mobile money transactions reached Shs 114.5 trillion, a 13.3% increase from last year, with the number of active mobile money subscribers also growing by 13.2% to 13.2 million.

MTN Uganda’s EBITDA increased by 22.3%, with the EBITDA margin rising to 51.7%, benefiting from a favorable macroeconomic environment and operational efficiencies. This strong financial performance allowed MTN Uganda to declare a second interim dividend of Shs 7.5 per share.

Looking ahead, MTN Uganda will focus on executing its Ambition 2025 strategy, aimed at strengthening digital inclusion, expanding financial services, and investing in infrastructure to support growth. The company upgraded its service revenue target to “upper-teen growth” and expects to maintain an EBITDA margin above 50%, reinforcing its market leadership and growth potential.

“As we look toward the future, MTN Uganda is committed to sustaining our growth momentum while staying true to our mission of transforming lives through digital and financial inclusion,” Mulinge concluded. “Our success is driven by our dedication to our customers, employees, and stakeholders, and we are excited about the opportunities that lie ahead.”