MTN in 2024 delivered yet another solid year, cementing its place as Uganda’s most profitable and actively traded listed company.
With double-digit revenue growth and record earnings, the telecom giant showcased operational strength and investor confidence.
Yet, looming over this strong performance is a strategic pivot that has analysts sounding the alarm: the planned spin-off of its fintech arm—MoMo—could significantly alter the company’s growth trajectory and valuation dynamics.
Fintech Fuelled, But For How Long?
MTN Uganda’s total revenue surged by 18.87% to UGX 3.17 trillion ($857.49 million) in FY2024, up from UGX 2.67 trillion in FY2023. Of this, fintech services contributed UGX 958.53 billion ($259.06 million)—a staggering 30% of total revenue.
The Mobile Money (MoMo) platform alone commands 13.8 million subscribers, cementing its role as the cornerstone of MTN’s digital transformation and profitability.
But the business may be heading into uncharted territory.
In March 2025, Bloomberg reported that MTN Group plans to spin off its fintech operations in Uganda, Ghana, and Nigeria within the first half of the year, ahead of a planned Mastercard investment deal.
Analysts at Crested Capital now question what the future holds for MTN Uganda post-MoMo.
Without fintech, Crested warns, the company’s growth could slide back into the single digits—a stark contrast to the double-digit gains seen in recent years.
“How will MTNU ensure agreements are at arm’s length and that profits remain with the publicly listed company, rather than flowing to shareholders of a decoupled fintech unit?” the Crested report asks pointedly.
Crushing It on the Bottom Line
Despite the clouds ahead, FY2024 was unequivocally strong. Profit after tax jumped 30.11% to UGX 641.55 billion ($173.39 million)—the highest of all listed companies in Uganda.
MTN outpaced Stanbic Uganda Holdings, which reported UGX 478.10 billion, and Airtel Uganda’s UGX 316.74 billion.
Key profitability ratios tell a compelling story. Return on assets (RoA) rose to 13.72% from 10.53%, while return on equity (RoE) climbed to 53.61% from 48.62%.
The EBITDA margin improved slightly to 52.17%, and net profit margin reached 20.22%.
Dividends were equally generous. MTNU declared UGX 506 billion in total dividends—equivalent to UGX 22.60 per share—translating to a dividend yield of 8.35% on the current market price of UGX 270.5.
The Post-Sale Rally and Market Dominance
The 2024 share performance was equally dramatic. Following the June 2024 Secondary Market Offer—where 20% of MTN Uganda shares were offered at UGX 140 (a 21% discount to market)—the stock surged to UGX 270.5 by Q1 2025, representing a 93.21% gain. The offer attracted significant interest from local retail and international investors.
By early 2025, MTNU had become the most traded counter on the USE, accounting for 68.62% of market turnover in Q1, worth UGX 13.99 billion ($3.78 million) out of the total UGX 20.34 billion.
It was no surprise then that MTNU topped Crested Capital’s coveted “Black Diamonds” list of high-performing stocks in its 2025 Investment Playbook.
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MTNU closed the year with a market cap of UGX 6.06 trillion ($1.64 billion), based on 22.4 billion shares outstanding.
The price-to-earnings (P/E) ratio rose to 9.44x from 7.72x, and the price-to-book (P/B) multiple surged to 5.06x from 3.75x—reflecting robust investor expectations, but also potential overheating.
The company remains majority-owned by MTN International (Mauritius) at 76%. The National Social Security Fund (NSSF) holds 11.7%, while businessman Charles Mbire retains 4%. Other institutional shareholders include First Rand Bank and JPMorgan-linked Africa Partners Fund.
Strong Financial Position
Despite increased profitability, MTNU’s total assets remained flat, slightly declining from UGX 4.68 trillion to UGX 4.67 trillion.
However, liabilities decreased by 5.30% to UGX 3.47 trillion, and total debt dipped to UGX 1.39 trillion. Shareholders’ equity rose 18% to UGX 1.20 trillion, signaling prudent capital management.
Operational cash flow grew by 17.84% to UGX 1.65 trillion, with capital expenditure increasing by 18.26% to UGX 418 billion—reflecting continued investment in infrastructure and technology.
Risk Factors: The Fintech Dilemma
Crested Capital’s analysis strikes a cautious tone on the fintech spin-off. While separation could unlock value in the MoMo unit—especially if MTN finalizes the Mastercard partnership—investors worry about revenue dilution, profit leakage, and transfer pricing risks.
The market is watching closely to see how MTNU will navigate intercompany agreements post-spin-off.
Without MoMo, growth could slow significantly. And while the core voice and data business still performed, the momentum was clearly in the digital and fintech space.
“Would the Fintech spinoff impact the counter’s price? Could the impact be positive or negative? And what is MoMo’s worth in the market?” the Crested report ponders—questions that investors are now racing to answer.
Outlook: A Delicate Balancing Act
MTN Uganda faces a pivotal year ahead. Its challenge will be to preserve earnings quality, sustain dividend payouts, and retain market confidence even as the fintech crown jewel prepares to exit.
With high profitability, strong brand equity, and expanding data penetration (10.1 million active data users), the fundamentals remain sound.
Yet, the company’s future valuations will hinge not just on numbers—but on how it manages the optics and realities of structural change. Investors will demand clarity on how the spin-off is executed, how revenues are shared, and how MTN Uganda redefines its growth narrative in a post-MoMo world.
Until then, the market waits.
