MTN Uganda Declares First Quarterly Dividend After Q1 Profit Dip

MTN Uganda has announced its first quarterly dividend, setting a payout of 8.5 Ugandan shillings per share, equivalent to about 6.5 billion shillings in total distributions. The payment is scheduled for June 19, with eligibility limited to shareholders recorded by June 1. The telecom operator is listed on the Uganda Securities Exchange and draws investors across multiple markets, including Kenya.

The announcement lands in the same reporting period that showed softer earnings performance. Net profit for the quarter ending March declined by 3.8% to 5.99 billion shillings, a movement the company partly linked to disruptions in connectivity during a government-directed internet and social media shutdown around the election period in January.

Despite the profit contraction, revenue continued to grow, rising 7.8% to 31.5 billion shillings. Cost expansion, however, moved faster, with total expenses increasing 11.8% to 15.5 billion shillings. That gap between income growth and rising operating costs helped compress overall earnings momentum, even as the company maintained a 19% profit margin.

A key shift behind the dividend decision is MTN Uganda’s revised payout framework. The company now targets distributing up to 75% of net income, a policy designed to stabilise shareholder returns even when quarterly performance varies. The approach signals a stronger emphasis on cash returns as earnings cycles become more uneven.

Operationally, MTN continues to reorganise its structure around mobile money. The separation of MTN MoMo from the core telecom business remains underway, aimed at allowing the financial services unit to scale independently in a market where transaction-based revenue is expanding faster than traditional voice services. Voice revenue growth slowed to 2.2%, reflecting pricing pressure and declining termination rates across the sector.

Chief executive Sylvia Mulinde framed the payout as part of the company’s returns strategy, saying: “Following this performance, the board approved a first interim dividend of 8.5 shillings per share. This reflects our commitment to delivering consistent returns to shareholders.”

Looking ahead, the revenue mix continues to shift toward data and mobile money, while voice gradually loses share of total service income. Market attention is likely to stay on whether the MoMo separation unlocks faster growth and whether cost pressures can be contained in coming quarters.

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