Ugandan tycoon Charles Mbire’s MTN Uganda announces record dividend payout

Oluwatosin Racheal Alabi -

Key points:

  • MTN Uganda announces record dividend payout of Shs 403 billion ($103.95 million), reflecting strong financial performance in 2023.
  • The telecom observed 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.
  • MTN Uganda commits to Shs 4.4 billion toward corporate social impact activities and offers financial backing to 25 projects through the changemakers initiative

MTN Uganda, under the leadership of Ugandan tycoon Charles Mbire is set to pay a record Shs 403 billion ($103.95 million) dividend, a 13.2% increase from last year, following a 21.4% profit growth. The final dividend of Shs 6.4 per share, was approved at the Annual General Meeting, along with two interim dividends, which brings the total to Shs 18 per share, to be paid on June 25, 2024.

According to a report by billionaires.africa, MTN Uganda’s profit after tax grew by 21.4% to Shs 493 billion ($127.4 million), outperforming Airtel Uganda. This led to an enhanced dividend payout. The company’s data revenue increased by 21.6% to Shs 621.9 billion ($161.1 million), and it saw a 22.4% rise in active data subscribers to 8.2 million, with total mobile subscribers growing 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.

Mbire stated that the telecom company paid Shs1.1 trillion ($288.5 million) in taxes, up from Shs 927 billion ($241.2 million) the previous year. This contributes to Uganda’s fiscal and economic goals. Additionally, a Shs 42.5 billion ($11.1 million) contribution was made to the Uganda Communications Universal Service Fund to support rural infrastructure and promote equitable telecom services.

Mbire also noted that the company invested Shs 4.4 billion ($1.15 million) in corporate social impact activities, and through the changemakers initiative, it provided financial support of Shs 500 million ($131,100) 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.

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.”

With the leadership of Mbire, 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 affirms.