Airtel Uganda announces a second return on investment with a final dividend of Shs2.15 per share for 2023, marking a payout of Shs86 billion from the company’s retained earnings.
Airtel Uganda has declared a final dividend of Shs2.15 per share for 2023, marking the second return on investment for some shareholders. The telecom’s board of directors attributed the Shs86 billion payout to the company’s retained earnings as of December 31, 2023, which were projected to reach Shs27.04 billion. Shareholders listed by March 26 will receive dividends around April 15.
With a promise made during its IPO, Airtel Uganda pledged to allocate 95 percent of retained earnings or net profits after tax, whichever was higher. Following the IPO, shareholder count rose to 4,600. Bharti Airtel, owning 88.11 percent of the company, stands to receive Shs75.7 billion, followed by Uganda’s NSSF with Shs9.03 billion.
This year’s dividends are the lowest in five years, contrasting the Shs358.7 billion payout in 2022. Airtel Uganda’s 2023 financials indicate profits after tax of Shs296.95 billion, lower than the projected Shs457.03 billion. Increased sales costs contributed to this, rising 26 percent from Shs333.96 billion in 2022 to Shs424.05 billion in 2023.
After MTN Uganda, Airtel Uganda is the second telco to go public in Uganda, listing 10.89 percent of its stake due to market acceptance.
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