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Telecommunications industry

Choosing Between MTN and Airtel: Growth and Dividends

Strategic Insights

— 2 min read

MTN and Airtel, Uganda's two largest telecommunication companies, offer different investment profiles, with MTN focusing on growth through diversification and Airtel prioritizing scale in pure data. MTN generates more revenue per user and has a stronger platform, but its profits are lower due to a one-off tax settlement. Airtel, on the other hand, has higher operating margins, turning its sales into cash more efficiently, but its growth potential may be limited by its pure data focus.

Key Takeaways:

  • MTN earned Shs1.7 trillion in service revenue in the first half of 2025, up 13.3 percent, compared to Airtel's Shs1.084 trillion, up 12.3 percent.
  • MTN's profit was Shs377.9 billion, a 28 percent increase, while Airtel's profit was Shs235.6 billion.
  • MTN has a more profitable mobile money business, with a Shs110.9 billion one-off tax settlement from transfer pricing audits.
  • Airtel has focused on cost discipline, with expenses up only 5.5 percent against 12.3 percent revenue growth.
  • MTN has a bigger scale, lower debt per customer, and the potential to be valued as both a telecom and Fintech.
  • Airtel is the income bet, converting sales into cash faster and paying out more in dividends, but has little room to absorb shocks if earnings dip.
  • MTN's mobile money spin-off could unlock growth and increase its value, while a delay or tax problems could hurt investors.
  • Airtel's data growth and home broadband expansion could continue to drive revenue and profits, but may not be enough to surpass MTN's growth potential.

Statistics:

  • Shs1.7 trillion is the amount of service revenue earned by MTN in the first half of 2025.
  • 13.3 percent is the increase in service revenue for MTN.
  • Shs1.084 trillion is the amount of service revenue earned by Airtel in the first half of 2025.
  • 12.3 percent is the increase in service revenue for Airtel.
  • Shs110.9 billion is the amount of the one-off tax settlement for MTN.
  • 28 percent is the increase in profit for MTN.
  • Shs235.6 billion is the amount of profit for Airtel.
  • 5.5 percent is the increase in expenses for Airtel.
  • Shs282.3 billion is the amount of operating cash generated by MTN.
  • Shs429.2 billion is the amount of operating cash generated by Airtel.
  • Shs99.6 billion is the amount of cash spent by Airtel.
  • Shs174 billion is the amount of interim dividend paid by Airtel.
  • Shs4.35 per share is the dividend paid by Airtel for the quarter ended June 2025.
  • Shs10 per share is the dividend paid by MTN for the quarter ended June 2025.
  • Shs1.3 trillion is the amount of debt owed by MTN.
  • 70 cents is the amount of debt per Shs1 earned by MTN.
  • Shs1.85 trillion is the amount of debt owed by Airtel.
  • Shs1.7 is the amount of debt per Shs1 earned by Airtel.

Sources:

  • "MTN Uganda, Airtel to spend sh20b on internet, 4G, 5G infrastructure" by Cosmas Kantanda, The East African, 2025.
  • "Airtel Uganda to sell tower assets to private equity firm" by Cosmas Kantanda, The East African, 2025.
  • "MTN Uganda moves to spin off Mobile Money into separate entity" by Cosmas Kantanda, The East African, 2025.
  • "Airtel Uganda's half-year results: Data revenue up 30.4% and router base grew 158% in home broadband" by Isaac Kamulegeya, The Daily Monitor, 2025.
  • "MTN Uganda's half-year results: Service revenue up 13.3%, profit increases 28% despite one-off tax settlement" by Isaac Kamulegeya, The Daily Monitor, 2025.

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