Uganda Securities Exchange-listed firm MTN Uganda (USE: $MTNU) has declared a final dividend of Ush 8.25 per share for FY2025, translating to a total dividend of Ush 28.75 per share, up 27.2% year-on-year.
The dividend increase follows the telco’s stellar financial performance on the back of a favorable macroeconomic environment. Service revenue grew by 13.4% to Ush 3.57 trillion, driven by strong demand for data and fintech services.
Data revenue rose sharply by 28.8% to Ush 1.0 trillion, primarily due to an 18.6% YoY surge in active data users to 12.0 million. Voice revenue inched upwards 1.0% to Ush 1.3 trillion amid the adverse impact of regulatory cuts to mobile termination rates (MTR). Active voice subscribers grew 10.0% to 24.2 million, supported by customer acquisition and Customer Value Management (CVM) initiatives, resulting in a 13.7% increase in voice traffic. However, voice contribution to service revenue declined to 35.7% from 40.1% in 2024 as more customers shifted to consume data and fintech services.
Digital revenue grew 36.8%, driven by robust performance in rich-media and content value-added services, while fintech revenue jumped 17.3% to Ush 1.1 trillion, underpinned by strong mobile money performance and recovery of XtraTime. Non-service revenue edged higher 29.9% to Ush 37.8 billion. Total revenue rose 13.6% to Ush 3.6 trillion, up from Ush 3.2 trillion in FY2024.
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) increased by 17.0% to Ush 1.9 trillion, attributed to prudent cost management under the Expense Efficiency Programme (EEP), which delivered Ush 64.1 billion in savings, alongside strong revenue performance.
MTN Uganda’s net income grew 5.8% to Ush 678.8 billion. Excluding a Ush 110.9 billion one-off tax settlement with the Uganda Revenue Authority (URA), net earnings grew 23.1% to Ush 789.7 billion.
MTN Uganda Shifts Dividend Policy
The Group’s total dividend payout amounts to Ush 643.7 billion, equivalent to 94.8% of net income, well above the company’s medium-term payout commitment of at least 75% of annual profit after tax. The Board also approved a transition to quarterly dividend payments, effective this year.
The final dividend of Ush 8.25 per share is payable on or about April 30, 2026, to shareholders on the company’s register as at April 10, 2026.
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