MTN Uganda has reported a 9.7% decline in profit after tax to Ush 267.0 billion for the first half of 2025, following a one-off Ush 110 billion payment to settle a long-running tax dispute with the Uganda Revenue Authority (URA). The settlement concluded a pricing audit spanning 2012–2024.
The dispute became one of the country’s most high-profile corporate tax cases in 2024, with URA initially claiming Ush 1.5 trillion in unpaid taxes before reducing the figure to Ush 260 billion after extensive negotiations. URA alleged that MTN failed to remit levies on vast volumes of local and international calls, basing its assessment on MTN’s own call data and independent verification by Global Voice Group, a government compliance contractor.
MTN CEO Sylvia Mulinge had previously criticised the URA’s approach, calling the tax claim “unfounded” and warning it could threaten investor confidence in Uganda. She accused the tax body of using coercive tactics and alleged internal corruption—claims that government officials denied, insisting MTN was obligated to remit all taxes collected on behalf of the state.
Despite the financial hit, MTN Uganda’s revenue grew 13.1% to Ush 1.97 trillion in H1 2025. The growth was driven by a 31.1% surge in data revenue to Ush 924.2 billion, alongside steady gains in voice and fintech services. Customer numbers also rose 10.2% to 22.8 million, supported by ongoing network expansion.
The board announced an interim dividend of Ush 10.0 per share, payable on September 19, 2025, to shareholders on record as of September 1. Additionally, shareholders approved the separation of MTN Mobile Money Uganda Limited as an independent entity, a move aimed at unlocking further growth opportunities in the mobile payments sector.
While the tax settlement has dented short-term profitability, MTN Uganda’s strong revenue growth and subscriber base suggest the telecom remains well-positioned for long-term market leadership.
