MTN Uganda's Data and Financial Technology Progress Propels Impressive Double-Digit Expansion
MTN Uganda Embraces Digital Transformation and Fintech Adoption for Robust Growth
In the first half of 2025, MTN Uganda has demonstrated a remarkable shift in its growth strategy, focusing on expanding data services and fintech adoption. This strategic move is evident in the significant growth of digital revenue sources, supported by investments in network infrastructure and customer experience.
The telecommunications giant reported a 13.1-13.3% year-on-year increase in total revenue to approximately USh 1.7 trillion (~$480 million), primarily driven by large growth in data and fintech revenues, while voice revenue growth remained marginal.
Key financial highlights and strategy elements include:
- Data revenue surged by around 31.3% to USh 490 billion ($134 million) due to increased internet penetration, higher subscriber numbers, and greater data usage.
- Fintech revenue grew 18.6% to USh 524.6 billion (~$146 million), mainly propelled by increased adoption of MTN's mobile money platform (MTN MoMo).
- Voice revenue grew slightly by 0.4% to USh 629 billion, indicating the ongoing shift away from traditional voice services toward data-centric consumption.
The subscriber base grew 10.2% to 22.8 million, with active data users rising 23.4% to 10.8 million and fintech users increasing 6% to 13.3 million.
MTN Uganda has pursued operational efficiencies leading to EBITDA growth of 17.8% to Shs 924.2 billion and an improved profit margin, despite a significant tax settlement of Ush 110.9 billion ($32 million) related to transfer pricing audits spanning 2012-2018, which impacted profit figures for the period. Excluding the tax settlement, underlying profit after tax grew strongly by 27.8%.
The company declared an interim dividend of Ush 10 per share, totaling Ush 223.8 billion, indicating strong cash flow and shareholder returns.
Growth Strategy Focus:
MTN Uganda is clearly prioritizing digital transformation through expansion of 4G coverage and investments to improve internet quality and penetrability. The emphasis on fintech reflects strategic moves to increase digital financial inclusion and tap into rising mobile money usage as a growth engine. Voice services remain important but are no longer the main revenue driver, mirroring global and regional telecom trends. Management emphasizes continued innovation in connectivity and fintech to meet evolving customer needs amid a digital economy transition.
In summary, MTN Uganda's financial and strategic direction reveals a successful pivot toward data and fintech revenue growth, supported by widening subscriber base and improving operational efficiency, even as voice revenue growth stagnates under regulatory and market pressures. The company navigates challenges such as tax settlements while maintaining strong profitability and customer growth across key digital segments.
- Despite a marginal growth in voice revenue, MTN Uganda's strategic focus on expanding data services and fintech adoption has led to significant growth in both data and fintech revenue sources, which collectively account for a large portion of their total revenue.
- In the realm of technology, MTN Uganda's mobile money platform (MTN MoMo) has seen a significant increase in adoption, contributing to the growth of fintech revenue, which now represents a substantial portion of the company's business.
- As part of their ongoing digital transformation, MTN Uganda is investing in technology to improve internet quality and penetration, while also emphasizing fintech innovations to cater to evolving customer needs in the digital economy.
