MTN Uganda Q1 profit falls to $46M amid election shutdown

MTN Uganda, the Kampala-based telecom operator partly owned by Ugandan tycoon Charles Mbire, began 2026 with slower earnings growth as rising network investments, currency pressures, and disruptions linked to Uganda’s January general elections weighed on profitability despite continued expansion in data and fintech services.

Profit after tax fell 3.8% to $46 million in the first quarter of 2026, down from more than $48 million a year earlier, even as total revenue climbed 7.8% to Ush914.49 billion ($243 million).

Service revenue exceeds $240 million despite headwinds

The Kampala-based telecom giant posted profit after tax of Ush174 billion ($46.25 million) for the quarter ended March 2026, down from Ush180.9 billion ($48.07 million) a year earlier. Service revenue rose 7.7% to Ush905.9 billion ($240.8 million), supported by continued growth in data and fintech services despite operational headwinds.

The results highlight the increasing importance of digital connectivity and fintech services in Uganda’s economy, where telecom operators play a central role in financial inclusion, mobile payments, and broadband expansion.

Data and fintech businesses drive revenue growth

MTN Uganda’s total subscriber base increased 7.2% to 24.4 million users, while active data subscribers climbed 16.4% to 11.9 million. Fintech subscribers rose 4.8% to 14.2 million. By the end of March, MTN Uganda’s 4G population coverage had increased to 89.3% from 88% a year earlier, while 5G coverage expanded to 20.4% from 16.3%.

Data revenue advanced 13.6% to Ush267.6 billion ($71.14 million), driven by higher smartphone usage, broadband demand, and expanding internet consumption across Uganda. Data traffic increased 25.1% during the quarter, although management said growth was partially constrained by the temporary internet shutdown during the election period. The telecom provider said active mobile money agents increased 26.5% to 268,300, while merchant numbers rose 25.9% to 128,500.

Voice revenue grew modestly by 2.2% to Ush327.1 billion ($86.96 million), reflecting slowing growth in traditional telecom services as consumers increasingly shift toward data-led communication. Fintech revenue, which includes mobile money and airtime lending services, rose 7.4% to Ush274.5 billion ($72.97 million). Transaction values surged 31.2% to Ush55.1 trillion ($14.64 billion), reinforcing mobile money’s expanding role in Uganda’s digital payments ecosystem.

Election disruptions weigh on profitability

Chief Executive Officer Sylvia Mulinge said operations were affected by internet restrictions imposed during Uganda’s January elections, which disrupted data services, mobile money transactions, and customer onboarding.

The company also cited challenges stemming from local government reforms aimed at decongesting urban centres, which affected operations within its mobile money partner ecosystem. “These headwinds impacted service delivery during the quarter, particularly within data and fintech,” Mulinge said in the earnings statement.

Leadership and market standing

Charles Mbire, one of Uganda’s most influential investors, holds a 4% stake in MTN Uganda, equivalent to 895.5 million shares, making him the largest individual shareholder on the Uganda Securities Exchange. As of March 2026, MTN Uganda’s total assets expanded by 5.82% to Ush5.67 trillion ($1.51 billion) from Ush5.36 trillion ($1.42 billion) at the end of 2025, while retained earnings declined marginally by 0.89% to Ush1.19 trillion ($317.2 million) from Ush1.2 trillion ($320.05 million).

MTN Uganda’s board approved a first interim dividend of Ush8.5 per share, amounting to Ush190.3 billion ($50.5 million), reinforcing the company’s commitment to shareholder returns. The ex-dividend date is scheduled for May 27, 2026, while payment is expected on June 19, 2026. Mbire is poised to receive Ush7.61 billion ($2.02 million) as interim dividends.

MTN Uganda’s results illustrate how telecom companies across Africa are increasingly dependent on high-growth data and fintech businesses to offset slowing voice revenue. However, Uganda remains one of East Africa’s fastest-growing digital economies, with mobile money, broadband access, and fintech adoption becoming key drivers of economic activity. MTN Uganda’s continued investment in network infrastructure positions the company to benefit from rising demand for digital services, even as operating costs and political risks remain elevated.