MTN Uganda has reported a 21.2% year-on-year increase in profit after tax to Ush571.2 billion for the nine months ended 30 September 2026, largely reflecting the absence of a one-off Ush111 billion tax settlement recorded in the previous year, alongside continued growth in mobile money and data adoption.
According to the unaudited financial results, total service revenue increased 8.5% to Ush2.84 trillion, supported by strong performances in fintech and data services, which together accounted for 62% of total service revenue.
Active data subscribers grew 14.3% to 12.6 million, while mobile money transaction values increased 18.3% to Ush166.6 trillion. Overall subscriber numbers rose 12.5% to 26.4 million, giving MTN a 63.4% market share.
Despite subscriber growth, operational momentum slowed in the third quarter (Q3), with data revenue growth falling to 7.8% year-on-year from 17.5% in the second quarter. MTN attributed the slowdown partly to the rapid proliferation of unauthorised public Wi-Fi resellers operating over commercial fibre lines.
Macroeconomic inflation, rising fuel prices and foreign exchange depreciation also weighed on margins, reducing the EBITDA margin by 2.8 percentage points to 51.1%.
“Despite these headwinds, we remained focused on executing our strategic priorities, delivering resilient performance through continued investment in network infrastructure, digital services and operational efficiencies,” said Sylvia Mulinge, CEO of MTN Uganda.
“Although near-term pressures remain, we are working with industry peers and the regulator to address these challenges and restore growth momentum, including enforcement against unauthorised Wi-Fi resellers while continuing to invest in sustainable long-term value creation.”
Reflecting the Q3 challenges, management has revised its financial year (FY) 2026 service revenue growth guidance to below its medium-term target, with full-year growth expected to broadly match the 8.5% recorded in the first nine months.
To preserve cash flexibility while maintaining investment, including a 32.6% increase in capital expenditure (capex) to expand 5G coverage to 25.6%, the board declared a lower Q3 interim dividend of Ush4 per share. This brings the total nine-month dividend payout to Ush21.25 per share.
“We remain confident in the underlying strength of the business. However, given slower growth in Q3 and the evolving operating environment, we now expect FY 2026 service revenue growth to be below our medium-term guidance and broadly in line with the growth delivered in the first nine months. Prudent cost management and operational efficiencies are expected to support an EBITDA margin of around 50% for the year,” Mulinge said.
“We continue to closely monitor foreign exchange, interest rate and fuel-related pressures, while maintaining our focus on disciplined execution and operational efficiencies,” she added.
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