MTN Uganda Q1 profit up 20.6% driven by data, fintech

KAMPALA, Uganda — MTN Uganda reported a 20.6% increase in after-tax profit to 180.9 billion shillings ($48.8 million) in the first quarter of 2025, compared to the same period in 2024, the company said last week. The growth was primarily driven by its data and mobile financial services segments.

In unaudited financial results, the telecom operator said total revenue for the January-March period rose to 847 billion shillings ($228.7 million), up from 750 billion shillings ($202.6 million) in the first quarter of 2024. MTN Uganda’s subscriber base grew by 14.6% to 22.8 million, while active data users surged 19.4% to 10.2 million.

Fintech transaction volume increased by 19.9% to 1.2 billion, with the value of those transactions rising by 23.9% to 42 trillion shillings ($11.3 billion). Voice revenue saw a more modest increase of 1.5%, which the company attributed to lower inbound voice revenue following an industry-wide review of mobile termination rates (MTRs).

“Despite the regulatory MTR changes, we are pleased with the solid strategic execution that supported growth in other areas of our business in the period while ensuring margin resilience and value preservation in our operation,” MTN said in a statement.

The company noted that a directive from the Uganda Communications Commission last year reduced the MTR from 45 shillings to 26 shillings, impacting outgoing voice revenues. To counter this, MTN said it intensified customer value management and improved its bundle offerings.

Profit growth was also linked to cost discipline and diversification into higher-margin segments. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 13.7% to 444 billion shillings ($119.9 million), with the EBITDA margin slightly improving to 52.4%, supported by lower interconnect costs and stable inflation.

At the Uganda Securities Exchange, MTN’s share price remained relatively stable during the week, trading at 270 shillings per share.

MTN CEO Sylvia Mulinge said strategic investments in network upgrades, smartphone affordability programs, and partnerships, including one with Mastercard, bolstered resilience against regulatory challenges.

The company reduced its net debt by 2.4% to 1.12 trillion shillings ($302.7 million) and maintained capital expenditure at 118.6 billion shillings ($32 million), focusing on expanding its 4G and 5G networks.

“Our investment of 118.6 billion shillings was focused on network densification to improve coverage and quality of service for our customers,” Mulinge said. She also highlighted network sharing agreements with Airtel Africa aimed at improving cost efficiencies and expanding geographical coverage, particularly in remote areas.

Earnings per share increased to 8.1 shillings from 6.7 shillings a year earlier, while service revenue grew by 13.5% to 841.4 billion shillings ($227.4 million), supported by a 32.5% jump in data revenue and an 18.4% rise in fintech income.