MTN Uganda has unveiled its ambitious plan to distribute a colossal 125.4 billion shillings in dividends to its esteemed shareholders for the first six months of the current year.
This monumental dividend payout is set to translate into a remarkable 5.6 shillings per share, propelling excitement and optimism among the company’s investors and stakeholders alike.
MTN’s strategic decision to return substantial value to its shareholders comes as a testament to the company’s unwavering commitment to delivering exceptional financial performance, even in the face of unprecedented challenges.
The company’s financial results for the first half of the year show a revenue growth of 15 percent compared to the same period in the previous year.
As part of these results, the proposed first interim dividend is announced. However, it is important to note that this dividend will be subject to withholding taxes.
The ex-dividend date is set for Tuesday, 29th August 2023, which means investors who purchase MTN shares on or before that date will be eligible for the interim dividend.
MTN Uganda’s Chief Executive Officer, Sylvia Mulinge, praised the company’s performance in the first half as resilient, considering the challenging local and global macroeconomic conditions, particularly the high inflation rates, which averaged 8 percent compared to 4.5 percent in the previous year.
These inflation rates significantly impacted consumers and business operations. Despite this, inflation has since eased to below 4 percent, providing encouragement for the company’s prospects in the next half, along with improved shilling stability.
“This improvement in macroeconomic conditions should ease some of the pressure on our customers and business going forward,” Mulinge says.
MTN’s voice performance showed steady growth at 9.4 percent, driven by a solid increase in their customer base. In the last half, they gained 910 new customers, reaching a total of 18.1 million, thanks to effective customer value management strategies.
The company also witnessed significant improvements in network quality, product innovation, and brand appreciation. Their revamped regional structure enhanced customer engagement, and decongesting 2G traffic by migrating customers to 3G contributed to improved network performance.
Despite voice segment growth, its contribution to total revenues declined from 45.5 percent to 43 percent, as data and fintech revenue segments experienced faster growth. Data revenue rose by 22.1 percent, with active data subscribers increasing by 21.4 percent to 6.9 million.
MTN’s efforts to increase smartphone adoption, including the “MTN Pay Mpola Mpola” campaign, led to a 24.1 percent rise in smartphone users and a smartphone penetration rate of 35.7 percent.
The Fintech segment, including mobile money, grew by 18.6 percent, supported by an 11.6 percent jump in the subscriber base to 10.9 million. Increased use of international remittances also contributed to revenue growth.
For the next half, MTN remains optimistic about the improving operating environment, with a focus on executing their “Ambition 2025” plans.
They expect improved data speeds, the introduction of e-SIMs, and 5G connectivity to address customer needs. Additionally, they plan to accelerate cashless conversion through partnerships and mobile money ecosystem expansion.
The telecommunications giant’s steadfast dedication to fostering sustainable growth and driving innovation has not only solidified its position as a market leader but has also enhanced its reputation as a responsible corporate citizen.
As shareholders eagerly await the fruition of MTN’s record-reaking plans, the anticipation is palpable, and industry analysts are closely monitoring the company’s financial performance, given the potential ripple effects this remarkable payout could have on the telecommunications sector.
Indeed, with MTN’s visionary leadership and relentless pursuit of excellence, this dividend announcement marks yet another milestone in the company’s extraordinary journey, reaffirming its status as a beacon of progress and prosperity in the ever-evolving world of telecommunications.
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