MTN Uganda Revenue Rises 8.5%

MTN Uganda’s revenue increased 8.5 per cent to $758 million (Ush 2.88 trillion) in the nine months to September 2026, but its 21.2 per cent rise in profit after tax masks underlying pressure on earnings.

The operator reported profit after tax of $150 million (Ush 571.2 billion), compared with the same period last year. However, the increase largely reflects a $29 million (Ush 111 billion) tax settlement recorded in the previous year’s results. Without that charge, MTN Uganda says profit would have declined by 1.9 per cent.

The results, published on November 5, show continued growth in data and mobile money, although slowing data revenue and rising operating costs are weighing on performance.

MTN Uganda had 26.4 million subscribers at the end of September, an increase of 12.5 per cent, giving it a 63.4 per cent market share. Active data subscribers rose 14.3 per cent to 12.6 million, while data traffic increased 31.9 per cent.

Mobile money transaction value grew 18.3 per cent to $43.8 billion (Ush 166.6 trillion), while the merchant base more than doubled to 202,800.

Data and fintech together accounted for 62 per cent of service revenue and contributed 86 per cent of its growth.

Data growth loses momentum

Despite higher traffic, data revenue growth slowed during the third quarter. Revenue from the segment increased 12.8 per cent to $226 million (Ush 860.6 billion) over the nine months, but quarterly growth eased to 7.8 per cent from 17.5 per cent in the second quarter.

MTN Uganda attributed the slowdown partly to unauthorised public Wi-Fi resellers offering unlimited packages through business fibre and fixed wireless connections.

The company said regulatory enforcement against the resellers began in October. However, it has not quantified the revenue lost to the competing services, CEO East Africa reported.

Chief Executive Sylvia Mulinge described the period as one of “a challenging operating environment, with macroeconomic and market-specific headwinds moderating topline growth.”

She added that “we now expect FY 2026 service revenue growth to be below our medium term guidance.”

TechAfrica News reported that full-year growth is expected to remain broadly in line with the 8.5 per cent recorded during the first nine months.

Costs rise as margins narrow

MTN Uganda’s total expenses increased 14.6 per cent, which the company attributed to higher fuel costs and network expansion.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 3 per cent to $387 million (Ush 1.47 trillion). However, the EBITDA margin declined by 2.8 percentage points to 51.1 per cent. The company expects its full-year margin to be approximately 50 per cent.

Capital expenditure, excluding leases, increased 32.6 per cent to $105 million (Ush 397.7 billion). The operator deployed 255 new sites and expanded its fibre network to more than 40,000 kilometres.

Its 4G network now covers 94 per cent of the population, while 5G coverage stands at 25.6 per cent.

The investment comes as cash generation weakens. Net cash from operating activities fell 10.2 per cent, while cash and cash equivalents declined to $43 million (Ush 163.6 billion).

Net debt to EBITDA increased to 0.9 times from 0.7 times at the end of 2025.

The wider economic environment has also added pressure. The Uganda shilling weakened 8.3 per cent year to date, while the Bank of Uganda raised its policy rate by 225 basis points to 12 per cent and lowered its 2026/27 economic growth forecast to between 6 per cent and 6.5 per cent, according to TechAfrica News.

Dividend reflects cash constraints

MTN Uganda’s board declared a third-quarter interim dividend of Ush 4 per share, equivalent to approximately $23.6 million (Ush 89.6 billion).

The company said the decision was intended “to align shareholder distributions with near-term cash generation and preserve financial flexibility.”

Total dividends for the nine months reached Ush 21.25 per share, an increase of 3.7 per cent, representing a payout ratio of 83.3 per cent.

The books close on December 1, with payment scheduled for December 18.

Fintech separation still under review

MTN Uganda’s proposed structural separation of its fintech business remains subject to regulatory review. The company has not provided a timeline for a decision.

The separation could reshape how the operator manages its mobile money operations, which have become an increasingly important contributor to service revenue.

For now, the nine-month results point to a business still expanding its subscriber base and digital services, but facing slower data monetisation, rising costs and tighter cash generation.