MTN Uganda shareholders earn increased dividends

MTN Uganda is rewarding it shareholders with a record UGX 403 billion in dividend payments, 13.2% higher compared to the previous year. This represents 81.7% of the company’s net income recorded last year.

MTN Uganda shareholders earn increased dividends
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  • MTN Uganda is rewarding it shareholders with a record UGX 403 billion in total dividend payments, 13.2% higher compared to last year. This represents 81.7% of the company’s net income recorded last year.

  • This follows the Annual General Meeting held at the Kampala Serena Hotel that approved third and final dividend for the financial year 2023 of UGX 6.4 per share, amounting to UGX 143.3 billion. 

  • With two interim dividends of UGX 5.6 and UGX 6.0 per share paid in September and December 2023, the final dividend payment of UGX 6.4 per share to be paid brings the total dividend to UGX 18 per share.

  • Looking ahead, MTN Uganda continues to focus on significant investments in network infrastructure, customer acquisition, and fintech innovations. 

MTN Uganda is rewarding it shareholders with a record UGX 403 billion in dividend payments, 13.2% higher compared to the previous year. This represents 81.7% of the company’s net income recorded last year.

This follows the Annual General Meeting held at the Kampala Serena Hotel that approved third and final dividend of UGX 6.4 per share, amounting to UGX 143.3 billion.  The company has set the payment on 25 June 2024.

With two interim dividends of UGX 5.6 and UGX 6.0 per share paid in September and December 2023, the final dividend payment of UGX 6.4 per share to be paid, brings the total dividend to UGX 18 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."

The enhanced dividend payout follows a significant 21.4% growth in MTN Uganda's profit after tax, which reached UGX 493 billion for the year ended December 31, 2023. The achievement was bolstered by a notable 21.6% increase in data revenue, rising to UGX 621.9 billion.

 Furthermore, the company observed a 22.4% increase in active data subscribers, totaling 8.2 million, alongside a growth in total mobile subscribers by 13.3% to 19.5 million.

Technological advancements were also at the forefront of the company's achievements, with the deployment of 37 new 5G sites and recognition by Ookla for providing Uganda’s fastest internet speeds. MTN Uganda’s device financing initiatives, such as MTN Kabode, significantly increased smartphone usage on its network, with penetration now at 39.1%.

"In addition to expanding our network, we are at the forefront of revolutionizing digital connectivity and interaction for our customers. The introduction of e-SIM technology marks a significant milestone, offering unmatched flexibility and convenience," Mulinge said.

In the financial services segment, MTN Uganda entered into a strategic partnership with Ericsson to enhance its Mobile Money (MoMo) services, further emphasizing its commitment to financial inclusion and secure mobile transactions.

Reflecting on the year's achievements, Charles Mbire, Chairperson of the MTN Uganda Board, stated, "This year has established a new standard for MTN Uganda. Our record profits and enhanced dividend payouts are a testament to our strategic acumen and operational excellence. More importantly, they reflect our commitment to empowering communities, driving technological innovation, and improving the lives of millions across Uganda."

Looking ahead, MTN Uganda continues 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, in accordance with its National Telecom Operating License obligations.

"Our vision for the future is resolute. With ongoing support from our shareholders and customers, MTN Uganda is poised for even greater achievements. Together, We’re Unstoppable,"  Mulinge said.

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