After reporting a 9.6 percent decline in profit for the year ended December 2023, Airtel Uganda has declared a final dividend of U$22 million, Taarifa Business Desk has Learned.
The new dividend adds to the earlier interim of U$19.45 million that was declared and paid soon after the company went public through an initial public offering (IPO) in November last year.
The telco will now have paid a total of U$41.47 million in its life as a publicly listed entity.
Airtel Uganda had promised to distribute a minimum of 95% of its annual net profit or retained earnings as dividends to shareholders. It had also projected it could pay a total of up to U$127.98 million as dividend in the period under review.
The telco fell short of the absolute target but met its payout ratio of 95 percent of net income, which stood at U$76 million, declining from U$83.37 million a year earlier.
The company’s cumulative dividends for the year under review stood at U$71.8 million, including distributions made when it was yet to list on the Uganda Securities Exchange.
The telco’s projection of paying a larger dividend did not see the lightof day as earnings fell substantially below target.
“Based on the projected financial information contained in Section 13 (Reporting Accountants Report) the company expects to pay a total dividend of approximately Ush500 billion for the financial year ending December 31, 2023, comprised of quarterly payments,” the telco said in its IPO documents.
The IPO was launched from August 30, 2023 to October 27, 2023, with shares subsequently listed on November 7, 2023.
Airtel Uganda’s earnings in the year ended December 2023 were weighed down by higher costs. Other operating expenses, for instance, grew 36.4 percent to Ush159.1 billion ($40.7 million) while network operating expenses jumped 25.1 percent to Ush314.4 billion ($80.5 million).
The telco’s total revenues grew by 11.5 percent to Ush1.7 trillion ($455 million), driven by positive performance in its core voice and data business.
“Airtel Uganda proudly achieved considerable growth in 2023, surpassing expectations with gross revenue of Ushs 1,784 billion, a remarkable 11.5 percent increase compared to Ushs 1,599 billion in 2022. This exceptional performance reflects our unwavering commitment to innovation, customer satisfaction, and operational excellence,” the company said in a statement.
