MTN Uganda to pay an interim dividend as profits surge to Shs 292.7bn

MTN Uganda has declared an interim dividend of Shs 5.4 per share, a total of Shs 120.9billion, after its net profit surges 21% to Shs 292.7billion for the nine months ending 30^th September 2022.

| THE INDEPENDENT | This is the second time that MTN Uganda has declared interim dividends to its shareholders this year, with the latest payment expected to be effected on 22^nd December to shareholders on the register as at 1^st December 2022.

“The dividend will be transferred electronically to the bank accounts or mobile money wallets of shareholders,” MTN Uganda said in a statement.

MTN Uganda’s service revenue rose by 11.5% to Shs 1,667.3billion in the first nine months of this year driven by an increase in subscriber base, fintech and data services.

The telecom’s customer base rose by 9.2% to 16.7million as fintech and data services recorded double-digit growth in revenues of 23.2% and 29.8% to Shs 470.4billion and Shs369.2billion, respectively, during the period under review.

Capital expenditure, excluding the right of use assets, increased by 20 % to Shs 276.7billion during the period to boost the network and systems and improve customer service delivery.

On Nov.3, MTNU closed its last trading day at Shs180.95 per share on the Uganda Securities Exchange, recording a 0.5% gain over its previous day closing price of Shs 180.00.

MTN Uganda Chief Executive Officer, Sylvia Mulinge, said the company remained resilient in the first nine months of the year, navigating the tough macro-economic conditions to deliver double-digit growth in line with its short-term guidance.

“A combination of global factors, recent drought, and weaker shilling have driven inflation to the highest level record in 10 years. This has had an impact on our foreign-denominated positions and investment programs as well as our customer spending power,” she said.

According to the Uganda Bureau of Statistics (UBOS) monthly inflation updates, Uganda’s inflation accelerated to a record high of 10 % in September this year compared to 2.2% during the same period last year.

Mulinge said the company continued to focus on executing the Ambition 2025 Strategy to scale the connectivity and infrastructure business, supported by continued investment in mobile and fixed access networks.

MTN Uganda’s Ambition 2025 Strategy aims to position the telecom company as a leader in providing digital solutions for Africa’s progress through driving industry-leading connectivity operations, creating shared value, and accelerating portfolio transformation.

Mulinge said the company’s investment is also focused on its key Environmental, Social, and Governance objectives to reduce greenhouse emissions and adopt renewable energy in line with its goal of net zero position by 2040.

MTN Uganda has so far partnered with Ubuntu Towers Uganda and American Tower Company (ATC) to connect 250 network sites countrywide to the hydroelectric grid this year to minimize the use of fossil fuel in its operations

This is in line with its environmental, social, and governance principles premised on the belief that the company’s growth and success should not come at the expense of the planet. MTN Uganda has approximately 3,000 network sites countrywide.

Going forward, Mulinge said the emerging trends envisage a tough macroeconomic environment ahead but remain confident in their adaptable business model focusing on cost management and sustained improvement in their customer value proposition to retain and broaden their subscriber base.

“We will continue to navigate, invest and execute our strategy with a focus to deliver on our service revenue growth and margins to enhance shareholder returns,” she said.

“We will sustain our investment program, to help us accelerate the growth of our connectivity and platform business as we continue to unlock their full potential.”

Mulinge said the company plans to consolidate its voice revenue strategy with vigorous customer value management initiatives, intensify smartphone penetration and home broadband activations, and scale up fintech services to maintain the growth momentum.

“We have built a resilient business and maintain our target of low double-digit service revenue growth over the medium term,” she added.

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