MTN Uganda announced a significant 15.9% revenue increase to USh1.94 billion ($515,957) Today, in accordance with Uganda Securities Exchange (USE) Trading Rules. The telecommunications company also reported a 21.1% surge in net profit. A second interim dividend of USh6.0 per share for the third quarter was approved by the directors, with the ex-dividend date set for Tuesday, November 28, 2023.
Investors who purchase shares before this date will be eligible for the interim dividend, while those buying after will not qualify. The dividend payout is scheduled for December 22, 2023. Major shareholders of MTN Uganda include NSSF with 39.8 million shares, Baloobhai Patel holding 15.7 million shares, and Central Bank of Kenya Pension Fund having a stake of 12.4 million shares.
In related news, Airtel Uganda has indicated plans for consistent dividends following its Initial Public Offering (IPO), despite being undersubscribed. The company has pledged to distribute at least 95% of net earnings annually to its shareholders. The IPO raised Ush ($56 million), with NSSF acquiring a significant stake of 10.55% with 4.2 billion shares. This acquisition pushed the IPO performance mark to 54.45%. Individual investors secured a 0.34% stake valued at Ush13.54 billion ($3.6 million), highlighting Airtel Uganda's reliance on pension funds and retail investors.
InvestingPro Insights
Drawing from the real-time data by InvestingPro, MTN Uganda's recent financial performance is underscored by high earnings quality, with free cash flow exceeding net income. This is a strong indicator of the company's financial health and its ability to generate cash, which is a key factor supporting the continued dividend payments as indicated in the report.
InvestingPro also highlights that MTN Uganda has been experiencing accelerating revenue growth. This aligns with the reported 15.9% revenue increase, demonstrating the company's strong market position and growth potential.
Finally, it's worth noting that MTN Uganda yields a high return on invested capital. This is a testament to the company's efficient use of capital to generate profits, which is a positive sign for investors looking for high returns.
In terms of InvestingPro Tips, two key insights stand out. The first is that MTN Uganda has consistently increasing earnings per share, which is a positive sign for investors as it indicates the company's profitability on a per-share basis. The second tip is that the company is a prominent player in the Wireless Telecommunication Services industry, which aligns with its strong performance and growth.
For more tips and insights, consider exploring the InvestingPro product, which includes over 14 additional tips related to MTN Uganda and other companies.
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