Companies

MTN Uganda to pay Sh3.5bn interim payout

MTN+

MTN switch stations in Uganda. FILE PHOTO | NMG

MTN Uganda is set to pay an interim dividend of Sh3.5 billion or Sh0.16 per share for the half year ended June when it reported a 48.1 percent net profit growth.

The telco, which has hired Safaricom executive Sylvia Mulinge as its next CEO, said the dividend would be paid on September 30 to shareholders who will be on record as of August 29.

The National Social Security Fund (NSSF) is among the Kenyan investors that acquired shares in MTN Uganda last year through an initial public offering.

The State-controlled pension fund acquired 39.18 million shares in the telco based on the latest available disclosures, indicating that it could receive an interim dividend of Sh6.2 million.

MTN Uganda’s total revenue in the half-year period rose 10 percent to Sh34.64 billion, lifting its net profit to Sh6.1 billion.

The company registered growth in customers across various services including mobile money whose revenue expanded 20.5 percent to Sh9.56 billion.

Data subscribers increased 21.8 percent to Sh5.6 million while fintech (mobile money) users jumped 14.1 percent to Sh9.8 million. Overall mobile subscribers went up 8.9 percent to 16.2 million.

The telco is keen on growing its financial services, including through partnerships.

“In line with our strategic priority to also accelerate advanced services in fintech, MTN Uganda has partnered with Jumo to offer micro loans on mobile money through our MoSente product,” the telco said.

“MoSente is a convenient service that enables MTN customers to access credit facilities. The partnership will allow for more short-term borrowing options for customers in addition to our MoKash product (savings and lending) and MoMo Advance product (overdraft facility), both in partnership with NCBA Bank.”

NCBA is a subsidiary of Kenyan banking multinational NCBA Group which pioneered similar products in the country in partnership with Safaricom.

MTN Uganda said Ms Mulinge will assume the CEO role from October 1, taking over from Wilm Vanhelleputte who was promoted by the parent firm MTN Group to head its west and central Africa markets.

She is among a group of long-serving Safaricom executives who have steered the company that grew to become the largest in the region by sales, earnings, and market value.

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