The market value of Ugandan businessman Charles Mbire’s stake in MTN Uganda has increased by more than $4.7 million in the past 43 days, as shares in the leading telecom firm surged by double digits on the back of renewed buying interest sparked by a stellar first-half performance.
Mbire, the chairman of MTN Uganda and the richest investor on the Uganda Stock Exchange, owns a significant 3.98-percent stake in the Ugandan telecom outfit, which is the fourth subsidiary of the South African mobile telecom giant, MTN Group.
Under his leadership, MTN Uganda has grown into a leading telecom services provider in East Africa, with 15.7 million members and a market share of more than 55 percent.
Shares in the Ugandan telecom firm closed trading on Wednesday at Ush190 ($0.05) per share, unchanged from their opening price, as investors continued to monitor market sentiments and macroeconomic data from the local and regional frontlines.
Since July 5, the company’s shares have increased from Ush170 ($0.045) to Ush190 ($0.05) at the time of writing, giving shareholders a total gain of 11.76 percent, including Mbire, who owns nearly four percent of the telecom group.
As a result of the recent share price gains, the market value of Mbire’s stake in MTN Uganda has increased by Ush17.91 billion ($4.7 million), from Ush152.24 billion ($39.98 million) on July 5 to Ush170.16 billion ($44.68 million) at the time of writing this report.
The $4.7-million bump in his stake solidifies his position as the richest investor on the Uganda Stock Exchange. He is also on track to receive an interim dividend of Ush4.48 billion ($1.155 million) from his stake MTN Uganda.
The telecom group reported a 48.1-percent increase in earnings to Ush193.6 billion ($50.2 million) in the first half of 2022, up from Ush130.7 billion ($33.7 million) in the same period in 2021.
The double-digit increase in profit can be attributed to a 10-percent surge in the company’s service revenue, which was driven by a significant increase in data and fintech revenue.