MTN Uganda, a subsidiary of the MTN Group, has reported flat earnings growth in the third quarter of its financial year, citing challenging economic conditions and the impact of unauthorised public Wi-Fi resellers on data revenue growth. The company's earnings before interest, tax, depreciation, and amortisation (Ebitda) for the three months ended September were 504.6-million Ugandan shillings, approximately R2m. This represents a flat growth rate compared to the same period last year.
Despite the challenging economic conditions, MTN Uganda's revenue grew 6.7% to 990.5m Ugandan shillings in the quarter, driven by a 7.8% increase in data revenue and a 13.3% rise in fintech revenue. The company's data subscribers grew by 14.3% and fintech subscribers rose 8.6% for the nine-month period. MTN Uganda's CEO, Sylvia Mulinge, stated that the company remains focused on executing its strategic priorities, delivering resilient performance through continued investment in network infrastructure, digital services, and operational efficiencies.
The company's Ebitda margin for the nine months recorded a 2.8 percentage points decline to 51.1%, reflecting costs associated with accelerated network expansion and the broader impact of higher fuel prices on transport, logistics, and supplier costs. MTN Uganda's profit after tax was flat in the third quarter at 203.7m Ugandan shillings, while profit for the year to date is up 21.2% at 571.25m Ugandan shillings. The Ugandan shilling depreciated by 7% quarter on quarter due to higher import costs and strong corporate demand for US dollars.
Unauthorised public Wi-Fi resellers continued to weigh on MTN Uganda's data revenue growth, while voice revenues were impacted by the Mobile Termination Rate (MTR) revision. The company added 2.9-million subscribers, expanding its base to 26.4-million, a 12.5% increase for the nine-month period. MTN Uganda retained its market leadership with a 63.4% subscriber market share.
Sylvia Mulinge, MTN Uganda's CEO, stated that despite near-term pressures, the company is working with industry peers and the regulator to address these challenges and restore growth momentum. This includes enforcement against unauthorised Wi-Fi resellers while continuing to invest in sustainable long-term value creation.
Given the slower growth in the third quarter and the evolving operating environment, MTN Uganda now expects its 2026 financial year service revenue growth to be below its medium-term guidance and broadly in line with the growth delivered in the first nine months. The company expects prudent cost management and operational efficiencies to support an Ebitda margin of around 50% for the year.
MTN Uganda's results are the latest in a series of reports from the MTN Group's African units, following MTN Ghana and MTN Nigeria, which reported results last week. The company continues to closely monitor foreign exchange, interest rate, and fuel-related pressures, while maintaining its focus on disciplined execution and operational efficiencies.
Key points
- MTN Uganda's Ebitda for the three months ended September was flat at 504.6-million Ugandan shillings.
- Unauthorised public Wi-Fi resellers weighed on MTN Uganda's data revenue growth.
- The company expects its 2026 financial year service revenue growth to be below its medium-term guidance.
