MTN Uganda Set to Increase Dividend Payouts for Investors

(Kampala) – MTN Uganda has recommended an increase in its second interim dividend to shareholders following a significant rise in net profit for the third quarter of 2024.
The telecom company reported a 29.6% increase in profit after tax, amounting to 460 billion Ugandan shillings for the first nine months of the year. This growth can be attributed to a robust expansion in subscriber numbers and rising revenues from data and financial technology (fintech) services.
MTN Uganda, a subsidiary of South Africa’s MTN Group, noted a 20.1% rise in total service revenue, which reached 2.3 trillion Ugandan shillings. The company’s data and fintech revenues saw impressive growth, increasing by 30.1% to 586 billion shillings and 23.5% to 686 billion shillings, respectively.
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The total number of data subscribers rose by 24.1%, reaching 9.3 million, while mobile subscribers grew by 13.3% to 21.6 million. Fintech subscribers also increased by 13.2%, reaching 13.2 million. Despite the competition from data and fintech services, voice revenue remained a key contributor, rising by 13.7% to 941.7 billion shillings. It continues to be the largest revenue source for MTN Uganda, even as the company focuses on diversifying its income streams through investments in new technology.
MTN Uganda invested over 297 billion shillings during the reported period to enhance its internet services, underscoring the company’s commitment to expanding its digital infrastructure. This strategic investment is expected to support further growth in its data and fintech segments, which are becoming increasingly vital to the company’s overall financial performance.