Sylvia Mulinge
HABARI DAILY I Kampala, Uganda I MTN Uganda’s profit after tax jumped 37.7 percent to Shs367.5 billion in the first half of 2026, underlining the growing contribution of mobile data and digital financial services to the telecom giant’s business.
The company’s interim results for the six months ended June 2026 show that service revenue increased by 9.4 percent to Shs1.86 trillion, despite a difficult operating environment marked by internet disruptions during the general election period, changes affecting mobile money operations and rising fuel and other operating costs.
MTN Uganda Chief Executive Officer Sylvia Mulinge said the performance demonstrated the resilience of the company’s business model.
“The improved performance reflects the resilience of our operating model, the strength of our customer base, and continued execution of our strategic priorities,” she said.
Data becomes growth engine
Data services were among the strongest performers during the period, with revenue rising 15.6 percent to Shs566.8 billion.
The growth was supported by an expanding customer base and increasing smartphone adoption. MTN’s active data users increased by 16.3 percent to 12.6 million, while smartphone penetration rose from 40.1 percent to 42.2 percent.
Data traffic grew by 26.9 percent, while the average amount of data consumed per customer increased by 9.2 percent.
The company’s total mobile subscriber base also expanded by 11.2 percent to 25.4 million, providing a larger market for its digital services.
Data now contributes 30.4 percent of MTN Uganda’s service revenue, highlighting the gradual transformation of the telecom industry from dependence on traditional voice services toward internet-based consumption.
Voice revenue, by comparison, grew by just 1.8 percent to Shs640.4 billion. Its contribution to service revenue declined from 36.9 percent to 34.3 percent, partly because of lower mobile termination rates.
MoMo maintains momentum
MTN’s fintech business provided another important source of growth, with revenue increasing 10.7 percent to Shs580.6 billion.
Active fintech users grew by 11.5 percent to 14.8 million, while customers conducted 2.6 billion transactions during the six months.
More significantly, the value of those transactions jumped 26.8 percent to Shs113.3 trillion, demonstrating the growing scale of mobile money transactions in Uganda’s economy.
The number of MTN mobile money agents increased by 23.8 percent to 270,500, while the merchant network approached 200,000.
Advanced financial services, including payments and banking technology, registered an even stronger performance, with revenue increasing by 26.2 percent.
The company said fintech growth came despite temporary disruption to its agent network following regulatory changes.
Profit rises despite higher costs
The bottom-line growth was particularly notable because MTN faced considerable cost pressures.
Earnings before interest, tax, depreciation and amortisation increased by only 4.7 percent to Shs967.5 billion, while the EBITDA margin declined from 53.7 percent to 51.2 percent.
Operating expenses rose by 15.1 percent, driven partly by higher fuel prices and other costs associated with running the network.
Consequently, profit before tax declined by 3.4 percent. However, a significantly lower tax charge helped propel profit after tax to Shs367.5 billion, a 37.7 percent increase.
MTN said its efficiency programme generated Shs11.1 billion in savings, helping contain some of the pressure on profitability.
Heavy investment in network
At the same time, MTN significantly increased investment in its network to accommodate rising demand. Capital expenditure excluding leases rose 44.6 percent to Shs317.7 billion, while total capital investment including leases increased 62.7 percent to Shs455.1 billion.
The company added 224 network sites, pushing 4G population coverage from 88.2 percent to 93.3 percent. 5G coverage also increased from 19 percent to 25.6 percent.
Its fibre network expanded by 90.1 percent to more than 35,000 kilometres, contributing to a 68.9 percent increase in home broadband customers.
Bigger dividend for shareholders
The strong net profit has also translated into a larger dividend for shareholders. The board declared an interim dividend of Shs8.75 per share, bringing total dividends declared during the first half to Shs17.25 per share, representing a 72.5 percent increase and a total payout of Shs386.2 billion.
MTN also paid Shs803.8 billion in direct and indirect taxes during the first half of the year.
Despite regulatory changes, currency pressures and rising operating costs, the company retained its medium-term ambition of delivering service revenue growth in the upper teens and maintaining an operating margin above 50 percent.
Mulinge said MTN remained confident about the second half of the year, with continued investment in network expansion, data services and digital financial solutions expected to sustain growth.
The first-half results point to a changing MTN Uganda, where data and digital finance are increasingly becoming the principal engines of growth, even as the company continues to navigate rising costs and a more competitive telecommunications market.
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