Business
MTN Uganda Half-Year Profit Falls on Tax Settlement Despite Strong Revenue Growth
MTN Uganda has reported a sh267 billion net profit for the first half of 2025, a 9.7% decline from the same period last year, after a one-off tax settlement weighed on the bottom line despite strong operational growth.
The telecom said the drop was largely due to a sh110.9 billion settlement with the Uganda Revenue Authority (URA) following a transfer pricing audit covering the years 2012 to 2024. Without the settlement, adjusted profit after tax would have risen 27.8% to sh377.9 billion.
The results, released in the company’s Interim Financial Results for the six months ended June 30, showed revenue climbing 13.1% to sh1.72 trillion, driven by a 31.3% surge in data income to sh490.2 billion and an 18.6% increase in fintech earnings to sh524.6 billion. Voice revenue remained flat at sh629 billion, constrained by changes to mobile termination rates.
MTN declared an interim dividend of sh10 per share, worth sh223.9 billion, to be paid on September 19.
Chief executive Sylvia Mulinge said the figures reflected “solid momentum” in MTN’s commercial and financial performance despite regulatory adjustments and economic headwinds.
“Shareholders have also approved the separation of our mobile money business, which will position it for faster growth and unlock further value,” she noted. “MTN Uganda continued to contribute to the country’s fiscal tax development by paying sh681 billion in direct and indirect taxes in H1 2025 over and above the recent settlement. We remain committed to being a responsible corporate citizen in Uganda.”
Customer numbers rose 10.2% to 22.8 million, with active data users jumping 23.4% to 10.8 million. Mobile money transaction volumes grew 20.3% to 2.4 billion, while their value surged 28.7% to sh89.3 trillion.
MTN said it remains optimistic about the outlook for the rest of the year, citing growth opportunities in data, fintech, and the soon-to-be separated mobile money operations.
Comments
