The Independent Uganda: You get the Truth we Pay the Price
The telecom company paid Shs1.1 trillion to URA in tax revenues compared to Shs 927bn in the previous year as a contribution to the country’s fiscal and economic development goals
Kampala, Uganda | THE INDEPENDENT | MTN Uganda is set to pay a record dividend of Shs 403 billion to its shareholders for the year ended December following a 21.4% growth in profit after tax to Shs 493billion. This is a 13.2% higher compared to the dividend payout last year.
The Annual General Meeting held at the Kampala Serena Hotel on May 22 approved third and final dividend of Shs 6.4 per share, amounting to Shs 143.3 billion. The company has set the payment on 25 June 2024.
With two interim dividends of Shs 5.6 and Shs 6.0 per share paid in September and December 2023, the final dividend payment of Shs 6.4 per share to be paid, brings the total dividend to Shs 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 Shs 493 billion for the year ended December, outpacing Airtel Uganda, which recorded 296. 95 billion, far less than the projected Shs Shs457. 03 billion during the IPO period.
The MTN’s achievement was bolstered by a notable 21.6% increase in data revenue, rising to Shs 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, said, “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.”
Paid Shs 1.1trillion in taxes
Mbire said the telecom company paid Shs1.1 trillion to Uganda Revenue Authority in tax revenues compared to Shs 927bn in the previous year as a contribution to the country’s fiscal and economic development goals.
He said a statutory contribution of Shs 42.5billion was made to Uganda Communications Universal Service Fund to support development of communications infrastructure in rural Uganda and promote social economic and regional equity in the deployment of telecommunications services.
Mbire said the company also invested Shs 4.4bn in corporate social impact activities, and that through the changemakers initiative, it provided financial support of Shs 500million to 25 impact projects, which enhance economic empowerment, education, health, water and environment and agriculture.
““I am both proud and excited about our continuing initiatives to lead digital, financial and social inclusion, creating shared value and a more inclusive and sustainable society,” he said.
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.
Meanwhile, the listed firm’s share price has remained stable at Shs 170, lower than the Shs 200 during the IPO period.
