MTN Uganda PAT Falls 9.7% on One-Off Tax Settlement, Revenue Grows 13.19%

MTN Uganda reported a 9.7% year-on-year decline in profit after tax (PAT) to Ush 267 billion for the first half of 2025, attributed to a one-off tax settlement of Ush 110.9 billion related to a transfer pricing audit conducted by the Uganda Revenue Authority (URA). The tax adjustment reduced the company’s profit margin by 3.9 percentage points to 15.5% [1]. Despite the drop in headline PAT, adjusted PAT—excluding the one-off tax settlement—increased by 27.8% to Ush 295.7 billion, from Ush 377.9 billion in the same period in 2024 [1].

The company’s total revenue rose by 13.19% year-on-year to Ush 1.72 trillion, driven by a 13.3% growth in service revenue, which includes data, voice, and fintech segments. Service revenue expanded to Ush 1.7 trillion from Ush 1.5 trillion in H1 2024 [1].

MTN Uganda’s subscriber base grew by 10.2% to 22.8 million during the first six months of 2025. This growth was supported by a 23.4% increase in the active subscriber base and the rollout of 355 new network sites, expanding 4G coverage to 88.2% of the population and 5G coverage to 19.0% [1].

Data revenue saw the most significant growth, increasing by 31.3% year-on-year to Ush 490.2 billion. This was driven by a 42.6% increase in data traffic and a 15.6% rise in average data usage per subscriber [1]. Meanwhile, voice revenue increased marginally by 0.4% to Ush 628.9 billion, but this was offset by a decline in incoming voice revenue due to lower mobile termination rates (MTRs). Outgoing voice revenue, however, grew by 4.7% [1].

Fintech revenue also showed strong performance, rising by 18.6% to Ush 524.6 billion. The company attributed this to a 20.3% increase in transaction volume to 2.4 billion and a 28.7% rise in transaction value to Ush 89.3 trillion [1]. The continued expansion of MTN Uganda’s mobile money ecosystem was a key factor in this growth.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 17.8% to Ush 924.2 billion, compared to Ush 784.6 billion in the previous year. EBITA margin also improved, rising by 21.8% to Ush 545.5 billion from Ush 664.6 billion [1].

MTN Uganda CEO Sylvia Mulinge highlighted that the results were achieved despite a challenging operating environment, including regulatory changes affecting voice revenue and the impact of the tax settlement on profitability. “MTN Uganda’s first-half results reflect the solid momentum in our key commercial and financial metrics,” Mulinge said. “This outcome was achieved against a challenging operating context characterised by changes in MTR regulations and the settlement of a tax liability, which had an adverse effect on our bottom line” [1].

The Ugandan shilling also gained ground during the period, appreciating by 2.4% against the US dollar, supported by increased remittance inflows and export receipts [1]. The company is optimistic about the second half of 2025, with expectations that the Ugandan economy will maintain an inflation rate between 4.5% and 5%, while the shilling is expected to remain strong [1].

MTN Uganda also announced the launch of two new products—Yinvesta, a micro-investment platform offering daily interest returns, and Cover by MoMo, an insurance product—to further expand its fintech ecosystem [1]. The company will continue to prioritise investment in its core network to enhance the stability and quality of both voice and data services [1].

The results also follow recent shareholder approval for the proposed structural separation of MTN MoMo from MTN Uganda, a move expected to streamline operations and focus on the growth of both the mobile network and fintech businesses [1].

Source: [1] MTN Uganda’s profit after tax drops by 9.7%, subscribers increased to 22.8M in H1’25 (https://coinmarketcap.com/community/articles/6899f3cf292cb809b62cb13c/)