For most of the past two decades, Uganda’s telecom story has been framed as a rivalry between two companies: MTN Uganda and Airtel Uganda.
But the 2025 results released by the two operators reveal something much bigger than competition. They show how telecoms have quietly become one of the most powerful engines of Uganda’s modern economy — generating trillions in revenues, handling hundreds of trillions in digital payments, and increasingly acting as the financial plumbing of everyday commerce.
The numbers are staggering.
MTN Uganda reported revenue of Sh3.6 trillion, up 13.6%, with profit after tax of Sh678.8 billion.
Airtel Uganda, whose financials are reported in dollars, delivered profit before tax of roughly Sh2.3 trillion and profit after tax of about Sh1.6 trillion, when converted at Sh3,600 to the dollar.
Two companies. Multi-trillion-shilling businesses. And an industry that has evolved from selling voice minutes to powering the digital economy.
MTN: The Scale Champion
MTN remains Uganda’s telecom heavyweight.
With Sh3.6 trillion in revenue, the company sits among the largest corporate revenue generators in the country.
Its network scale is formidable:
24.2 million subscribers
12 million active data users
14.7 million fintech users
That scale translates into industry-leading profitability.
MTN’s EBITDA margin of 53.8% reflects a business that has reached operational maturity. Telecom economics at this stage resemble utilities: heavy upfront investment followed by long periods of strong, predictable cash flow.
In 2025 alone, the company invested about Sh843 billion expanding network capacity and improving service quality.
Airtel: The Profit Story
If MTN dominates scale, Airtel’s 2025 results tell a story of profit acceleration.
Converted into shillings, Airtel generated roughly:
Sh2.3 trillion profit before tax
Sh1.6 trillion profit after tax
That sharp jump in profitability suggests improved operational efficiency and a telecom market entering its cash-generation phase.
In the early years of Uganda’s telecom sector the focus was subscriber growth — building towers, expanding coverage and acquiring customers.
Now the industry has entered its second phase: monetisation.
The Real Engine: Fintech
Yet the most important similarity between the two companies lies in mobile money.
At MTN:
Fintech revenue reached Sh1.1 trillion
Transaction volumes hit 5 billion
Transaction value reached Sh195.5 trillion
Those numbers illustrate how telecom networks have evolved into financial infrastructure.
Mobile money is now the nervous system of Uganda’s economy.
Salaries move through it. Bills are paid through it. Small traders rely on it for daily commerce.
Telecom companies are no longer simply communication networks.
They are digital financial ecosystems.
Data Is the New Voice
Another structural shift visible in the results is the rise of data.
MTN’s data revenue jumped 28.8% to Sh1 trillion, while voice grew just 1%.
The smartphone has replaced the voice call as the primary interface with telecom networks.
Consumers now rely on telecom infrastructure to stream video, transact online, run businesses and access government services.
In effect, telecom operators are evolving into digital platform companies.
A Quiet But Important Change for Investors
One of the most interesting announcements buried in the MTN results is a change in dividend policy.
Previously, MTN Uganda paid dividends three times a year — after the full-year, half-year and third-quarter results.
The company will now pay dividends quarterly.
That may sound like a minor administrative tweak, but for investors it is actually quite significant.
Quarterly dividends mean:
more predictable cash flow
shorter waiting periods for income
stronger appeal for institutional investors
In effect, MTN is positioning itself more clearly as a high-yield telecom infrastructure stock.
What This Means for Investors
For investors on the Uganda Securities Exchange, the telecom sector remains one of the most compelling opportunities on the market.
At current closing prices — Sh472 for MTN Uganda and Sh112 for Airtel Uganda — the valuation picture becomes even more interesting.
Telecom Investment Comparison
| Company | Price (UGX) | EPS (UGX) | P/E | PEG | Div Yield | ROIC | Rank (PEG) | |
|---|---|---|---|---|---|---|---|---|
| MTN Uganda | 472 | 30 | 15.7 | 0.69 | 6.1% | 32% | 2 | |
| Airtel Uganda | 112 | 40 | 2.8 | 0.14 | 7.0% | 28% | 1 |
The PEG ratio — price relative to growth — is often one of the most revealing valuation metrics.
A PEG below 1 typically suggests undervaluation relative to growth potential.
By that measure, Airtel Uganda ranks first, suggesting that the market may be significantly underpricing its growth prospects.
MTN Uganda ranks second but remains the higher-quality dividend stock, reflecting its market leadership and stronger fintech ecosystem.
Investment Strategy
For long-term investors, the telecom sector offers two complementary opportunities.
MTN Uganda – Dividend Stability
MTN paid Sh28.75 per share in dividends in 2025, distributing about Sh643.7 billion to shareholders.
With a payout ratio above 75%, the company behaves like a high-yield telecom utility.
The shift to quarterly dividends further strengthens its appeal to investors seeking steady income.
Airtel Uganda – Value and Growth
Airtel’s extremely low valuation relative to earnings growth makes it one of the most interesting value opportunities on the exchange.
If its profit trajectory continues, the current price may eventually look like a bargain.
The Bigger Story
The rivalry between MTN and Airtel may dominate headlines, but the deeper story is structural.
Telecom networks have become the digital backbone of Uganda’s economy.
They connect businesses, enable payments, and power digital commerce.
And as the country continues to digitise, telecom companies will likely remain among the most powerful wealth-creation vehicles on the Uganda Securities Exchange.
For investors, the lesson is simple.
Owning a slice of the network may prove one of the smartest investments of the coming decade.
