Home Industry NSSF set to earn Sh5.9m dividend from MTN Uganda

NSSF set to earn Sh5.9m dividend from MTN Uganda

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The National Social Security Fund (NSSF) is set to earn a Sh5.9 million dividend from its investment in MTN Uganda after the telco declared a final payout equivalent to Sh0.149 per share.

The State-controlled pension fund acquired 39.18 million shares in the telecommunications firm last year when it went public through an initial public offering (IPO).

The dividend will be paid on June 24 through electronic bank transfers to shareholders who will be on the May 26 register.

NSSF, which made the investment through asset manager Sanlam, was the highest-profile Kenyan investor to participate in the transaction which did not meet the target of reducing MTN Group’s ownership by 20 percent.

The South African multinational managed to sell a 12.96 percent stake to individuals and institutions in an offer that featured a significant discount for East African investors.

This is the first time MTN Uganda is publishing its results as a publicly-traded firm listed on the Uganda Securities Exchange (USE).

Net income for the year ended December increased 5.8 percent to Sh10.8 billion, helped by a 9.7 percent jump in total revenue to Sh65.3 billion.

The company says the earnings would have been higher under normal trading conditions, noting that it paid a total of $17.1 million (Sh1.9 billion) in licence fees and costs of terminating a services agreement with Invesco Uganda Limited.

“The adjusted profit after tax of Sh12.2 billion results into a 20.4 percent year-on-year increase if the above is excluded and an increase of [net] margins by 1.7 percentage points,” the telco said of the impact of the non-recurring payments.

MTN Uganda saw its customer numbers rise 10.7 percent to 15.7 million, with active data subscribers jumping 16 percent to 5.3 million.

Its financial service subsidiary MTN Mobile Money Uganda paid the parent company a dividend of Sh1.9 billion in the review period.

“We see a significant opportunity for data growth in fixed connectivity through MTN WakaNet, fibre to home and fibre to business, and will continue our investment programme in that segment,” the telco said in a statement.

“We are currently progressing with the implementation of a new pricing framework for the fixed data connectivity services to widen our customer catchment area.”