MTN Uganda to pay out Shs120b dividends to shareholders after posting increased revenue in 3rd quarter

Telecom giant MTN Uganda has announced that it will pay out a dividend of Shs5.4 per share for the quarter ended September 2022 after posting increased revenue.

This will be out of the Shs120 billion that the company declared as divided payment. The number of shares is 22,389,044,239.

According to MTN, the money will be paid out on November 28. All dividend payments have been subjected to withholding tax in accordance with the Income Tax Act.

This is an increase from Shs4.706 per share MTN Uganda paid out as final dividend for the year ending December 31, 2021, which was UGX 105.4 billion to 21,452 shareholders.

The payment of the share comes after the company announced an increase in revenue, which was supported by continued growth in data and Fintech segments that posted double digit growth for the third quarter ended September.

Data and revenues from Fintechs such as mobile money registered an 11.5 percent growth in revenues to Shs1.667 trillion. 

Active Fintech users increased by 19.4 percent to 10.6 million while Fintech revenue grew by 23.2 to Shs470.4b with net additions standing at 809,000.

“Our aggressive investment in the 4G network led to an increase in our 4G population coverage to 77.4 percent. Data traffic on the network recorded an increase of 42.4 percent, of which 61.2 percent was carried on the 4G network,”

Sylvia Mulinge, MTN chief executive officer,

Data revenue grew by 29.8 percent to Shs369.2b due to sustained growth in active data users by 28.8 or 300,000 additions as well as improved internet propositions and network quality.

“Our aggressive investment in the 4G network led to an increase in our 4G population coverage to 77.4 percent. Data traffic on the network recorded an increase of 42.4 percent, of which 61.2 percent was carried on the 4G network,” Ms Sylvia Mulinge, the MTN chief executive officer, said.

She added that earnings before interest, tax depreciation, and amortization (EBITDA) grew by 9.5 percent to Shs852.5b.

However, MTN noted, voice revenues declined by 2.3 percent. But this was an improvement from the 3.5 percent drop posted during the second quarter.