MTN Uganda has announced impressive results for the first half of 2025, showing resilience in essential commercial and financial areas despite facing significant changes in mobile termination rate (MTR) regulations and the resolution of a tax liability.
The company released its performance report for the year’s first half, ending in June, indicating that it has maintained positive momentum amid challenges affecting its financial results.
In September 2024, the Uganda Communications Commission mandated a review of MTR regulations affecting MTN and other telecom companies, resulting in a 44% reduction to 26 Ugandan shillings.
CEO Sylvia Mulinge updated stakeholders to address the tax situation and confirmed the resolution. She stated, “As noted in our FY 24 review, MTN Uganda underwent a transfer pricing audit covering 2012 to 2018. After constructive discussions, we agreed to settle a total tax liability of US$32 million for the audited years from 2012 to 2024.”
Mulinge pointed out that without the impact of the tax settlement, MTN Uganda would have recorded a 27.8% increase in underlying profit after tax, along with an improved profit margin of 21.9%.
During the review period, the telecom company showcased significant growth: mobile subscribers climbed by 10.2% to 22.8 million, active data users surged by 23.4% to 10.8 million, active fintech subscribers rose by 6.0% to 13.3 million, and service revenue increased by 13.3% to US$476 million.
Moreover, data revenue rose by 31.3% to US$137 million, voice revenue increased slightly by 0.4% to US$176 million, and fintech revenue escalated by 18.6% to US$147 billion.
Regarding the company’s growth trajectory, Mulinge stated, “We are committed to navigating our business challenges with care and responsiveness, aware of their implications on our operations. As we advance our strategic goals, we are focused on adapting to our customers’ evolving needs to guarantee they enjoy the benefits of a modern connected lifestyle.”
She also emphasised the company’s continued investment in Uganda, revealing a capital expenditure of US$61 million (excluding leases) to enhance the core network, increase capacity to minimise traffic congestion, and improve customer experience.
