Voice calls are dying. Data, mobile money drive MTN Uganda’s growth

2026-03-18 - 07:25

Active Data Subscribers: +18.6% to 12.0 million Data Revenue: +28.8% to Shs 1.0 trillion Active Fintech Subscribers: +6.5% to 14.7 million Fintech Revenue: +17.3% to Shs 1.1 trillion. MTN Uganda’s latest financial results tell a story that goes far beyond traditional telecom profits. They reveal how one of the country’s most influential companies is quietly repositioning itself at the very center of Uganda’s digital economy. For years, the industry’s bread and butter came from voice calls and text messages. But that era is fading. In its place, a new business model has emerged, one built on data connectivity, mobile financial services, and digital infrastructure. The company’s 2025 financial results, released recently, tell a story not just about profits, but about a shifting economic landscape. MTN Uganda reported total revenue of Shs 3.6 trillion, up 13.6 per cent year-on-year, while service revenue rose 13.4 per cent as demand for mobile data and digital financial services surged. Behind the numbers lies a deeper transition: voice calls, once the backbone of telecom profits, are fading. In their place, data connectivity and fintech services are emerging as the engines of growth. UGANDA’S DATA BOOM Perhaps the clearest signal of this shift is the explosion in data usage. MTN Uganda’s data revenue jumped 28.8 per cent to Shs 1.0 trillion, fueled by the addition of 1.8 million new data users, bringing the company’s total to 12 million active subscribers. Several trends are driving the surge. Smartphone adoption on MTN’s network has reached 42.8 per cent, and mobile data traffic increased 51.2 per cent in a single year. At the same time, 80 per cent of data consumption now runs on 4G networks, a sign that Uganda’s digital infrastructure is steadily improving. The implications stretch beyond the telecom industry. Internet access, once largely confined to Kampala and a handful of major towns, is gradually reaching rural communities. As smartphones become cheaper and mobile networks expand, more Ugandans are joining the online economy, using mobile apps to learn, trade, bank and communicate. MTN’s investment strategy reflects that reality. In 2025 alone, the company spent Shs 549 billion expanding network coverage and boosting capacity. By the end of the year, 4G population coverage had reached 88.6 per cent, while 3G coverage climbed to 96.2 per cent. The company also accelerated its early 5G rollout, adding 126 new sites, a move that positions Uganda for faster digital services in the years ahead. Across Africa, telecom operators are locked in a similar infrastructure race. Whoever builds the fastest, widest networks will effectively control the highways of the digital economy. FINTECH BECOMES THE NEW TELECOM FRONTIER If data is driving connectivity, fintech is reshaping how people move money. MTN Uganda’s financial services division, built largely around its mobile money platform, generated Shs 1.1 trillion in revenue, up 17.3 per cent from the previous year. The scale of that ecosystem is striking. The company now serves 14.7 million fintech subscribers, supported by a network of 241,000 mobile money agents and 114,800 merchants accepting digital payments. Transaction activity has reached extraordinary levels. The platform processed five billion transactions in 2025, an increase of 16.8 per cent, with total transaction value climbing to Shs 195.5 trillion, up 23.3 per cent. Mobile money began years ago as a simple tool for sending cash between phones. Today it is evolving into something far more complex. MTN is expanding into what it calls “advanced fintech services,” including digital savings products, small loans, merchant payment systems, and partnerships with banks. These newer services already account for 30.6 per cent of fintech revenue, highlighting the company’s ambition to build a broader digital financial ecosystem. In many African countries, mobile networks have quietly become the primary gateway to financial services, especially for people outside the traditional banking system. THE QUIET DECLINE OF VOICE While data and fintech are surging, voice calls are slowly losing their dominance. MTN Uganda’s voice revenue grew just 1 per cent, reaching Shs 1.3 trillion. Regulatory changes, such as lower mobile termination rates, have squeezed margins, while messaging apps and internet calls have steadily replaced traditional phone conversations. As a result, voice now accounts for 35.7 per cent of service revenue, down from 40.1 per cent a year earlier. The shift mirrors global telecom trends. From Nairobi to New York, the industry’s economic center of gravity has moved away from voice services toward data-driven digital platforms. STRONG PROFITS DESPITE INDUSTRY SHIFTS Even as its business model evolves, MTN Uganda remains highly profitable. The company reported EBITDA of Ush 1.9 trillion, up 17 per cent, with margins expanding to 53.8 per cent. Profit after tax reached Ush 678.8 billion. When adjusted for a one-off tax settlement, underlying profit growth was 23.1 per cent, signaling strong operational performance. MTN also maintained a relatively conservative balance sheet. Its net debt-to- EBITDA ratio stands at 0.7 times, leaving room for further borrowing if needed to fund future expansion. Shareholders benefited as well. The company declared a total dividend of Shs 28.75 per share, representing Shs 643.7 billion in payouts for the year. In a move aimed at improving predictability for investors, MTN Uganda plans to begin quarterly dividend payments going forward. BETTING BIG ON INFRASTRUCTURE The company’s most aggressive bet may be its infrastructure spending. MTN Uganda invested Shs 834.6 billion in capital expenditure in 2025, a sharp increase aimed at strengthening network capacity and expanding broadband connectivity. The investments support several priorities: expanding high-speed mobile coverage, scaling fibre-to-the-home and fibre-to-the-office connections, rolling out 5G infrastructure and meeting regulatory coverage obligations under its national telecom license. The company’s fibre network has expanded rapidly, now stretching 27,037 kilometres, more than 50 per cent longer than a year earlier. Across the continent, telecom firms are increasingly becoming infrastructure providers for digital economies rather than simply communication networks. TELECOMS AS ECONOMIC ANCHORS MTN Uganda’s influence extends well beyond its balance sheet. The company paid Shs 1.6 trillion in direct and indirect taxes in 2025, making it one of Uganda’s largest contributors to public revenue. It also reported progress on environmental targets, reducing greenhouse-gas emissions 43 per cent from its 2021 baseline as part of its commitment to reach net-zero emissions by 2040. Through the MTN Foundation, the company invested Shs 5.1 billion in education, health and digital inclusion programs, reaching more than 22,400 beneficiaries. Such initiatives reflect growing expectations that telecom operators play a broader role in national development. THE BIGGER DIGITAL STORY Uganda’s economy is projected to grow 6.5 to 7 per cent in the coming years, according to the central bank, driven by exports, tourism recovery and rising investment. For MTN Uganda, that economic momentum offers a tailwind. The company expects “upper-teens” service revenue growth in the medium term while maintaining EBITDA margins above 50 percent, though capital spending will remain high as network expansion continues. But the significance of these results goes beyond one company. Across Africa, telecom operators are evolving into digital platforms that power everything from mobile payments and e-commerce to streaming services and enterprise connectivity.