MTN Uganda’s dividend payment up 13% to Shs403bn  

MTN Uganda is paying its shareholders a record Shs403 billion in dividends, 13.2% higher compared to the previous year. This represents 81.7% of the company’s net income recorded last year, executives said in a press statement today.

This follows the Annual General Meeting held at the Kampala Serena Hotel that approved the third and final dividend of Shs6.4 per share, amounting to Shs143.3 billion.  The company has set the payment on 25 June 2024.

With two interim dividends of Shs5.6 and Shs6.0 per share paid in September and December 2023, the final dividend payment of Shs6.4 per share to be paid brings the total dividend to Shs18 per share.

“We are delighted to distribute the rewards of an outstanding year to our shareholders, who have consistently demonstrated their confidence in our strategic direction and operational capabilities,” said Sylvia Mulinge, Chief Executive Officer of MTN Uganda.

“This year’s increase in dividends underscores MTN Uganda’s robust performance and our unwavering commitment to delivering shareholder value,” Mulinge added in a statement.

The enhanced dividend payout follows a significant 21.4% growth in MTN Uganda’s profit after tax, which reached Shs493 billion for the year ended December 31, 2023. The achievement was bolstered by a notable 21.6% increase in data revenue, rising to Shs 621.9 billion among other factors according to company executives.

Executives said the leading telco will continue to focus on significant investments in network infrastructure, customer acquisition, and fintech innovations.

The company is committed to achieving 90% geographical coverage across Uganda by 2025 aligned with its National Telecom Operating License obligations.

By press time, trading data at the Kampala-based bourse indicated that MTN Uganda’s (MTNU) share price was Shs170, representing a 15% decline from the IPO price of Shs200. Its IPO launch was in October 2021.