MTN Uganda has today marked its first anniversary as a publicly listed company, trading its shares on the Uganda Securities Exchange (USE). On 6th December 2021, the company executives and its representatives marked a milestone by ringing the bell on the Uganda Securities Exchange becoming the local stock with the largest market capitalization.
“We are very proud to celebrate our first anniversary as a public listed company on the Uganda Securities Exchange,” said Ms. Sylvia Mulinge, the Chief Executive Officer at MTN Uganda.
“At the begging of this journey, MTN Uganda committed to drive business growth to return value to all our shareholders. I am excited to share that we have delivered on our promise in our first year having recorded impressive growth in all the key parameters in the past nine months.”
MTN Uganda’s latest unaudited financial results released recently indicates that it registered a 21% growth in net profit to Shs292.65 billion for the first nine months to September 2022, up from Shs241.9bn recorded last year. The company’s total revenue grew by 11.6% from Shs 1.5 trillion to Shs1.68 trillion riding on data and fintech services as mobile subscribers increased by 9.2% to 16.7 million during the same period under review.
Ms. Mulinge said MTN Uganda has since paid Shs 447.55 billion in dividends and declared another Shs 120.9 billion to be paid to shareholders on the register by 22nd December 2022.
“However, the telecom company is still operating in a volatile operating environment characterised by unfavourable macro and micro conditions and my focus is to ensure that we improve our product and service offering to retain our customers amidst this aggressive environment,” She said.
She added: “We also need to build financial resilience in this environment so that we can preserve liquidity through efficient supply chains and continue to invest in business growth. We will continue to engage with the industry regulator for more spectrum to be more efficient in the delivery of our services to our customers.”
Investors increase on the bourse
Ms. Mulinge revealed that the company’s decision to unveil the first-ever fully digital IPO that is paperless with all transactions made via the MTN Momo platform has revolutionalised Uganda Securities Exchange. She said more than 80,700 customers have since opened their Securities Central Depository (SCD) accounts using the MTN USSD and MoMo App platform, enabling them to apply for shares seamlessly, check for their balances for all listed companies, access mini-statement to monitor transactions and knowing their brokers.
“This figure is far higher than the number of SCD accounts that USE had before this innovation,” she added.
MTN Uganda Chairperson Charles Mbire congratulated management, shareholders, customers and the government for the achievements registered since the company listing on the bourse. MTN Uganda’s listing on the USE saw the MTN Group’s shareholding in the telecom company reduce from 96% to 83.05% in line with the Group’s strategic priority to create shared value, partly through ensuring broad-based ownership in all operating subsidiaries.
This also aligned with the Ugandan Communications Commission’s new licensing requirement for broad-based ownership by Ugandans. And while the company is one year as a public entity, MTN Uganda founded in 1998, has a proud 24-year heritage of transforming the country’s telecommunication sector.
The company has contributed to the increase in mobile penetration from merely 0.27% to the current penetration of 70%, the equivalent of seven lines for every ten individuals. It has been the largest taxpayer in Uganda for the last 10 years, having paid 839 bn in 2021 alone.
MTN Uganda is also committed to improving the lives of the communities it operates having dedicated 1% of its annual profit after tax to the MTN foundation since 2007 impacting millions of Ugandan lives.