What you need to know:
- MTN also announced that Shs335.6b will be paid out to shareholders as dividends for the period ended December 2021, with a per share payment of Shs14.99.
MTN paid Shs839b in taxes for the period ended December 2021, according to Mr Charles Mbire, the telecom’s chairman.
Speaking during the telecom’s first annual general meeting as a listed company at the weekend, Mr Mbire said the tax contribution cements MTN’s commitment to contribute to the development and recovery of the economy, which has suffered due to Covid-19 and external disruptions.
MTN, which has more than 21,000 shareholders, Mr Mbire also noted, has aligned it business priorities to focus more on environmental, social, and governance principles.
During the meeting, MTN also announced that Shs335.6b will be paid out to shareholders as dividends for the period ended December 2021, with a per share payment of Shs14.99.
MTN remains one of the largest tax payers and one of Uganda’s most profitable company. Mr Mbire indicated that at least Shs230b has already been paid out as interim dividend.
In 2021 MTN offered 20 percent of its shares to the public in what has since become the largest IPO in Uganda’s history.
However, the IPO was undescribed, which was largely blamed on a slump in the economy due to Covid-19.
The telecom raised Shs561b, which was below the targeted Shs910b.
Mr Mbire said that whereas 2021 was a challenging year due to the impact of Covid-19, MTN had demonstrated resilience, returning positive results at a time when most businesses were counting losses.
During the period, he said, MTN had successfully separated its e-commerce and financial technology business from telecommunication services, a requirement that is now provided for under the National Payment Systems Act.
The Act effectively transferred regulation of mobile money services from Uganda Communications Commission to Bank of Uganda.
In the first three months of this year, MTN further demonstrated a strong profit position, reporting that pretax profit had risen by 20.2 percent, growing to Shs143.7b boosted by a massive increase in revenues from internet connection, which ballooned Shs115.6b or 45 percent.