MTN Uganda Posts Steady Q1 2026 Growth, Revenue Up 7.7% Amid Operational Challenges
The company’s commercial performance was largely driven by strong momentum in its data and fintech segments.
MTN Uganda Limited has released its unaudited financial results for the quarter ended 31 March 2026, reporting steady growth in its customer base and service revenue despite significant operational disruptions during the period.
The company’s commercial performance was largely driven by strong momentum in its data and fintech segments. Total subscribers increased by 7.2% to 24.4 million, supported by continued network expansion and improved customer engagement. Active data users rose sharply by 16.4% to 11.9 million, while fintech subscribers grew by 4.8% to 14.2 million, reflecting sustained adoption of mobile financial services.
Service revenue grew by 7.7% to Ush 905.9 billion, with data revenue increasing by 13.6% and fintech revenue rising by 7.4%. Voice revenue recorded a modest 2.2% increase, which was affected by regulatory reductions in Mobile Termination Rates (MTR). Profitability remained resilient, with EBITDA rising by 4.3% to Ush 462.9 billion and an EBITDA margin of 50.6%. However, Profit After Tax declined by 3.8% to Ush 174.0 billion, mainly due to moderate revenue performance following early-year disruptions.
Investment in infrastructure accelerated during the quarter, with capital expenditure (excluding leases) surging by 69.8% to Ush 201.5 billion as the company front-loaded network investments. This supported improvements in coverage, with 4G population coverage reaching 89.3% and 5G coverage expanding to 20.4%.
The period was marked by a challenging operating environment, including election-related disruptions and regulatory changes. As described by management:
“MTN Uganda continues to deliver growth, reinforcing our pivotal role in advancing the country’s digital transformation. Our operations in the quarter were partially hampered by the internet shutdown during the national general elections in January 2026 which affected provision of data and mobile money services and onboarding of customers in the period.”
– Sylvia Mulinge, CEO, MTN Uganda
Operations were partially affected by an internet shutdown during the January 2026 national general elections, which disrupted data services, mobile money transactions, and customer onboarding. In addition, local government reforms aimed at city decongestion disrupted mobile money ecosystem partner operations. Regulatory changes also impacted performance, following the Uganda Communications Commission (UCC) decision to reduce MTR from Ush 26.0 to Ush 22.5 effective 15 January 2026. Macroeconomic conditions added further pressure, with inflation averaging 3.0% and the Uganda Shilling depreciating by 4.0% due to increased US dollar demand and rising global oil prices.
Despite these challenges, the company maintained shareholder returns and strengthened governance. The Board approved a first interim dividend of Ush 8.5 per share, totaling Ush 190.3 billion, payable on 19 June 2026 to shareholders registered by 1 June 2026. Additionally, Dr. David Ogong was appointed as a non-executive director effective 10 April 2026, bringing over 25 years of experience in financial services and communications.
Looking ahead, MTN Uganda remains committed to its “Ambition 2025” strategy. While near-term service revenue growth guidance has been revised to “mid-teen” levels following Q1 challenges, the company continues to target “upper-teen” growth over the medium term and maintain stable EBITDA margins above 50%, supported by continued investment in network expansion and digital services.
