MTN Uganda is preparing to reward shareholders with its first quarterly dividend, even as the telecom giant reported a slight decline in profit during the first quarter of 2026.
The company announced an interim dividend of 8.5 Ugandan shillings per share, amounting to a total payout of about 190.3 billion Ugandan shillings. Shareholders on record by June 1 will receive the payment on June 19.
The dividend announcement comes at a time when the company is navigating a more challenging operating environment. Profit after tax for the quarter slipped by 3.8 percent to 174 billion Ugandan shillings, as MTN Uganda dealt with slower revenue momentum and rising operating costs.
Still, the broader picture for the telecom operator remains relatively strong.
Revenue grew by 7.7 percent to 905.9 billion Ugandan shillings, driven largely by continued expansion in data usage and mobile financial services. Data revenue rose by 13.6 percent during the quarter, while fintech revenue climbed 7.4 percent, highlighting the company’s increasing dependence on digital services rather than traditional voice calls.
Voice revenue growth slowed sharply to just 2.2 percent, reflecting pricing pressure and regulatory reductions in mobile termination rates across Uganda’s telecom sector.
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Part of the pressure on earnings also came from disruptions linked to Uganda’s January 2026 general elections. According to the company, internet and mobile money shutdowns during the election period affected customer onboarding and digital service operations.
Despite the softer earnings performance, MTN Uganda appears determined to reinforce investor confidence. The company recently revised its dividend framework, increasing its payout target to as much as 75 percent of net income as it pushes for more consistent shareholder returns.
At the same time, the telecom operator continues restructuring its business around mobile money. The planned separation of MTN MoMo from the core telecom business is expected to give the fintech unit more flexibility to expand independently in a market where transaction-based services are growing faster than traditional telecom offerings.
The company also accelerated infrastructure spending during the quarter, with capital expenditure rising nearly 70 percent as MTN expanded both its 4G and 5G network coverage across Uganda.
