Investors eye Sh3b MTN interim dividend
By John Otini, March 9, 2022Kenyans who invested in MTN Uganda shares should brace for an early win after the firm announced an interim dividend of Sh3 billion.
The company which issued its first public financial results after the initial public offer (IPO) indicated a strong potential in the mid term and headroom for future growth amid shareholder value appreciation.
During that period, MTN’s profit after tax increased by 6 per cent to Sh11 billion as mobile subscribers rose 10 per cent to 15.7 million.
The firm recommendation of a Sh3 billion dividend translates to a dividend per share of Sh0.12 indirectly eases Kenya’s decade long dry spell for IPO earnings. “As such the total dividend for the financial year 2021 is Sh10 billion full year dividend which translates to a total dividend per share of Sh0.45 a share,” the company added.
The dividend will be paid on June 24 through electronic bank transfers to shareholders who will be on the May 26 register meaning the company will see high demand in the run up to May.
Public offering
MTN reported a solid service revenue growth of 9 percent against inflation growth of 2.2 per cent driven by double digit growth in data and mobile money.
Kenyan investors included individuals, corporates and pension funds such as NSSF which bought 39 million shares when MTN went public last year.
“In line with the recovery of economic fundamentals, we expect low double digit growth in service revenue over the medium term,” the company said. The IPO gave Kenyans a chance at easy wins after several years without a major IPO on the Nairobi Securities Exchange.
“The returns were rather assured when it comes to Uganda’s MTN listing, it was not something to miss out on,” Rina Hicks head of operations at Faida Investment Bank said.