MTN shareholders to bag sh120b by December

Dec 08, 2022

MTN’s latest unaudited financial results released recently indicates that it registered a 21% growth in net profit to sh292.65b for the first nine months to September 2022, up from sh241.9b recorded last year.

Sylvia Mulinge, the MTN Uganda CEO

Ricks Kayizzi
Journalist @New Vision

MTN Uganda has proved to be one of the best-performing entities on the Uganda Securities Exchange (USE), fronting a sh120.9b dividend to be paid to its shareholders by end of December.

This is in addition to the sh447.55b it has since paid in dividends earlier in the year.

MTN’s latest unaudited financial results released recently indicates that it registered a 21% growth in net profit to sh292.65b for the first nine months to September 2022, up from sh241.9b recorded last year.

According to a recently issued press release, the company’s total revenue grew by 11.6% from sh1.5 trillion to sh1.68 trillion, riding on data and fintech services as mobile subscribers increased by 9.2% to 16.7 million during the same period under review.

On Tuesday 6th December, MTN Uganda marked its first anniversary as a publicly listed company, trading its shares on the USE.

On 6th December 2021, the company executives and its representatives marked a milestone by ringing the bell on the USE, becoming the local stock with the largest market capitalization.

“At the beginning of this journey, we were committed to drive business growth to return value to all our shareholders, said Sylvia Mulinge, the MTN Uganda CEO. She said in their first year, they have recorded impressive growth in all the key parameters in the past nine months.

She said more than 80,700 customers have since opened their Securities Central Depository (SCD) accounts using the MTN USSD and MoMo App platform.

“We are however still operating in a volatile operating environment characterised by unfavourable macro and micro conditions,” added Mulinge, saying that her focus is to ensure that they improve on their products and services while retaining their customers amidst the aggressive environment.

She promised to build financial resilience in the competitive environment, “so that we can preserve liquidity through efficient supply chains and continue to invest in business growth.”

Mulinge revealed that the company’s decision to unveil the first-ever fully digital IPO that is paperless with all transactions made via the MTN Momo platform has revolutionalised Uganda Securities Exchange.

“As a result, more than 80,700 customers have since opened their Securities Central Depository (SCD) accounts using the MTN USSD and MoMo App platform, enabling them to apply for shares seamlessly, check for their balances for all listed companies, access mini-statement to monitor transactions and knowing their brokers,” she said.

“This figure is far higher than the number of SCD accounts that USE had before this innovation.”

Charles Mbire, the MTN Uganda Chairperson commended management, shareholders, customers, and the government for the achievements registered since the company listing on the bourse.

MTN Uganda's listing on the USE saw the MTN Group’s shareholding in the telecom company reduce from 96% to 83.05% in line with the Group’s strategic priority to create shared value, partly through ensuring broad-based ownership in all operating subsidiaries

This also aligned with the Ugandan Communications Commission’s new licensing requirement for broad-based ownership by Ugandans.

And while the company is one year as a public entity, MTN Uganda founded in 1998, has a proud 24-year heritage of transforming the country’s telecommunication sector.

The company has contributed to the increase in mobile penetration from merely 0.27% to the current penetration of 70%, the equivalent of seven lines for every ten individuals.

It has been the largest taxpayer in Uganda for the last 10 years, having paid sh839b in 2021 alone.

“We are also committed to improving the lives of the communities we operate in, having dedicated 1% of our annual profit after tax to the MTN foundation since 2007 impacting millions of Ugandan lives,” further reads the press release.

MTN managers further promised to continue engaging with the industry regulator for more spectrum and to be more efficient in the delivery of their services to customers.

Founded in 1998, MTN Uganda has a proud 24-year heritage of transforming the country’s telecommunication sector.

It has a presence in all 134 districts of Uganda. Services are delivered through a network of over 170,000 Mobile Money agents, 200 service stores, and 13 main distributors.

For the six months ended June 2022, MTN Uganda had 16.3 million subscribers, 9.8 million MoMo users, and 5.7 million active data users.

 

 

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