MTN Uganda reported strong results in key commercial and financial metrics during the first half of this year, despite substantial changes in mobile termination rate (MTR) regulations that impacted voice revenue and the settlement of a tax liability.
The telco today released its first-half (H1) 2025 performance, which ended in June, saying the results represent good momentum despite the challenges that hampered its bottom line.
In September 2024, the Uganda Communications Commission issued an industry-wide review directive for MTN and other telcos about MTR regulations. Rates were decreased by 44%, to 26 Ugandan shillings.
Regarding the tax issue, CEO Sylvia Mulinge informed shareholders and the market that it had been resolved.
She explained: “As highlighted in our FY 24 review, MTN Uganda was under transfer pricing audit/review for the period 2012-2018.
“Following without prejudice discussions, both parties reached an amicable agreement to settle a total tax liability of Ush 110.9 billion ($32m) that covered the audited financial years 2012-2024.”
Without the impact of the tax settlement, MTN Uganda would have achieved underlying profit after tax growth of 27.8% with an improved profit margin of 21.9%, she said.
In terms of the telco's performance during the review period, mobile subscribers climbed by 10.2% to 22.8 million; active data subscribers increased by 23.4% to 10.8 million; active fintech subscribers rose by 6.0% to 13.3 million; and service revenue climbed by 13.3% to Ush 1.7 trillion.
In addition, data revenue went up by 31.3% to Ush 490.2 billion; voice revenue increased by 0.4% to Ush 629.0 billion; and fintech revenue increased by 18.6% to Ush 524.6 billion.
Commenting on the growth of the business, Mulinge said: “We continue to navigate the challenges in our business environment with diligence and agility, conscious of the impact they have on our operations.
“As we continue to drive our strategy, we remain attentive to the evolving needs of our customers to ensure we are delivering the promise of ensuring they enjoy the benefits of a modern connected life.”
She added: “We continued to invest in Uganda and deployed capex of Ush 219.7 billion (ex-leases) in our core network in the period, with a focus on network capacity densification to reduce traffic congestion and enhance customer experience.”
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