Manoj Murali, Airtel Uganda Manager Director
In a dynamic market landscape, Airtel Uganda continues to demonstrate its resilience and commitment to long-term sustainability amidst evolving industry challenges. The telecommunications giant recently announced its strategic decision to adapt to market realities by adjusting its dividend policy for 2023. While the reduced dividend of Shs2.15 per share may initially seem like a setback, it underscores Airtel Uganda’s proactive approach to ensure the company’s stability and future growth.
Airtel Uganda’s decision to adjust its dividend payout is a strategic move aimed at navigating the changing economic environment and strengthening its financial position. By prioritizing the allocation of retained earnings to sustain operations and investments, the company reaffirms its commitment to delivering value to shareholders over the long term. This adjustment aligns with Airtel Uganda’s pledge to maintain a sustainable dividend policy that balances shareholder returns with strategic reinvestment for future growth opportunities.
Airtel Uganda has declared a final dividend of Ush86 billion ($22 million) after reporting a 9.6 percent decline in profit for the year ended December 2023. The new dividend adds to the earlier interim of Ush76 billion ($19.45 million) that was declared and paid soon after the company went public through an initial public offering (IPO) in November last year.
Airtel Uganda had promised to distribute a minimum of 95 percent of its annual net profit or retained earnings as dividends to shareholders. It had also projected it could pay a total of up to Ush500 billion ($127.98 million) as dividend in the period under review.
The company’s cumulative dividends for the year under review stood at Ush280.8 billion ($71.8 million), including distributions made when it was yet to list on the Uganda Securities Exchange.
Despite external challenges, Airtel Uganda remains steadfast in its dedication to providing reliable and innovative telecommunications services to its customers. The company’s focus on enhancing network infrastructure and expanding service offerings reflects its ongoing commitment to meeting the evolving needs of consumers in Uganda’s dynamic market.
Moreover, Airtel Uganda’s proactive measures to address operational cost increases demonstrate prudent financial management and a commitment to operational efficiency. By optimizing resources and streamlining processes, the company aims to enhance its competitive edge and drive sustainable profitability in the long run.
Airtel Uganda’s decision to adjust its dividend policy also reflects its responsiveness to regulatory requirements and market dynamics. As the telecommunications industry undergoes transformational changes, Airtel Uganda remains at the forefront of innovation, leveraging technology to deliver superior services and experiences to its customers.
Furthermore, Airtel Uganda’s commitment to corporate social responsibility (CSR) initiatives underscores its role as a responsible corporate citizen. Through various CSR programs, the company continues to make a positive impact on local communities, contributing to social development and economic empowerment across Uganda.
In conclusion, Airtel Uganda’s strategic adaptation and commitment to sustainable growth position the company for continued success in the dynamic telecommunications landscape. While challenges persist, Airtel Uganda remains focused on driving value for shareholders, delivering superior services to customers, and making a positive impact on society. As the company navigates the road ahead, its unwavering dedication to excellence and innovation will continue to drive its success in Uganda and beyond