MTN Uganda is not only connecting millions of people to voice, data, and digital financial services but also delivering strong returns to its investors. In 2024, the company posted one of its best all-round financial performances yet, solidifying its position as a dependable, high-yield investment for both institutional and retail shareholders.
From a growing dividend book to strong EBITDA margins and rising market confidence, MTN Uganda’s path to profitability is anchored in purpose, performance, and prudent execution. This story explores the company’s recent performance, how it’s creating sustainable value, and what independent analysts say about its future.
Strong Financial Performance: Profits, Dividends and Market Confidence
In 2024, MTN Uganda recorded a robust 30.1% increase in profit after tax (PAT) to UGX 641.5 billion, with earnings per share rising to UGX 28.7, up from UGX 22.0 in 2023. This profit surge was supported by a 19.5% growth in service revenue, which reached UGX 3.14 trillion, driven by voice, data, and fintech segments.
EBITDA rose by 20.7% to UGX 1.7 trillion, with EBITDA margin improving to 52.2%, up 0.8 percentage points year-on-year. According to Andrew Bugembe, MTN Uganda’s Chief Finance Officer, this was made possible through operational efficiency and cost control. “We contained cost growth, helped by lower inflation in the period, through the disciplined execution of our expense efficiency programme, which realized savings of UGX 72.6 billion.”
Reflecting this strong financial base, the board approved a full-year dividend of UGX 22.6 per share in 2024, amounting to UGX 506 billion. The final dividend payout of UGX 8.5 per share alone was up 32.8% from the previous year. “Management exists to return and give value to shareholders. To consistently do this over the three years is, I would say, a great feeling for the team and what management has done,” Bugembe added.
Operational Excellence: Investing for Growth, Delivering Efficiency
MTN Uganda’s consistent capital investments have played a major role in ensuring quality service delivery and long-term shareholder value. In 2024, the company invested UGX 418 billion (excluding leases) into expanding its network, while maintaining a stable capex intensity of 13.2%.
These investments expanded 4G population coverage to 87.9% and 5G coverage to 15.3%, up from just 37 5G sites in 2023 to 538 sites by year-end. CEO Sylvia Mulinge noted, “The improved performance of our network resulted in us being recognized iat the 2024 Mobile World Congress in Barcelona, for having the fastest network in Uganda, and also the fastest LTE network in Africa.”
Mulinge credited MTN Uganda’s performance to a stable macroeconomic environment and customer-focused execution. “We have been able to deliver a stable performance in line with the guidance that we provided to our investors last year. The economic growth, reduced inflation, and currency stability created a conducive environment for us to perform.”
In the fintech space, the company processed 4.3 billion transactions (up 26.6%) worth UGX 158.6 trillion in value (up 19.1%). Advanced fintech services, especially credit and payments, drove growth in digital revenue and deepened financial inclusion.
Richard Yego, MTN MoMo Managing Director, noted that the value of loans disbursed via MoMo jumped 156% to UGX 1.45 trillion, while the number of borrowers more than doubled to 5 million. “This is a massive achievement that we are truly proud of… the credit facility is one of the biggest ways we can support our customers to enhance their purchasing power,” Yego said.
Market Position & Capital Markets Trust: Earning Confidence, Driving Returns
In 2024, MTN Uganda successfully concluded a secondary market offer, raising public shareholding to 20%, as required under its licensing obligations. The offer was 2.3 times oversubscribed at UGX 170 per share, signaling strong investor confidence. “We are super happy to see where we’ve come, how consistent we’ve been,” Bugembe remarked. “At UGX 200, the share price dropped to UGX 160 Then UGX 170 stayed flat. But we kept our faith, kept our promise, kept investing. The result and output of what we have today is very visible.”
The secondary offer sparked a turnaround in market sentiment. By February 2025, MTN Uganda’s stock had risen to UGX 270, a 35.88% gain from its IPO price. According to Joram Ongura, CEO of Amioo Capital, “Including dividends brings the 3-year periodic total return to 62.24%. MTN Uganda has certainly affirmed the benefits of investing on the stock market.”
Ongura added: “MTN Uganda was the best-performing telecom stock in the East African region with more than 60.23% increase in 2024.MTN Uganda is currently the most liquid stock on the Uganda Securities Exchange and is likely to remain the highest trading stock after UMEME exits the bourse.”
He credits MTN’s consistent dividend policy and macroeconomic tailwinds as key factors. “The company continues to grow at double digit returns and I expect this to continue. The sustainability of MTN’s dividend policy is of limited concern… the company shall continue to grow its dividend payout rate.”
Kenneth Legesi, CEO and CIO at Ortus Africa Capital, agrees that MTN’s true shareholder value lies in its dividend track record. “While price appreciation alone reflects a 35% gain from IPO to 2025, the more significant driver of returns has been MTN Uganda’s dividend policy.”
Legesi estimates MTN Uganda’s internal rate of return (IRR) at 17.4% per annum, well above Uganda’s 2–4-year treasury bond yields of 13.5–15%. “This return exceeds the average return on Uganda’s government bonds… particularly for income-oriented investors seeking yields above inflation and government paper.”
A Purpose-Led Future
As MTN Uganda looks ahead to 2025, its leadership remains focused on maintaining operational momentum and investor value. The company is preparing to structurally separate its fintech unit, MTN MoMo, as part of its portfolio transformation strategy—a move expected to unlock further value.
According to Sylvia Mulinge, “Our focus remains on driving growth and execution of our strategy to unlock value for all our stakeholders… strategically, this year we will focus on the structural separation of our fintech business in alignment with MTN’s portfolio transformation strategy.”
Meanwhile, the company remains committed to affordability and customer value. “We have been able to deliver more affordable, off-net pricing for our voice services, increase data speeds without incremental cost, and slash P2P MoMo transfer fees,” Mulinge noted.
Growth with Purpose, Returns with Resilience
In a region where investor confidence is hard-earned and often fleeting, MTN Uganda has proven its mettle. It is delivering consistent double-digit earnings growth, expanding digital infrastructure, increasing broadband access, and empowering millions through financial inclusion.
The numbers speak for themselves—UGX 641.5 billion in PAT, 52.2% EBITDA margin, UGX 506 billion paid in dividends, 30.5% data revenue growth, and 22.8% fintech revenue growth. Shareholders are not just watching their investments grow; they are seeing their capital drive purposeful impact.
As Joram Ongura summed it up: “MTN Uganda’s performance since listing suggests commendable management performance and proper decision-making… MTN is well positioned with its consistent investment in infrastructure and exploration of alternative revenue-generating avenues.”
For investors, the message is clear—MTN Uganda is not only profitable but purposeful. And as Sylvia Mulinge put it, “Once you climb one mountain, there’s always another mountain to climb. In 2025, we do it all over again.”
