Nairobi, May 7 -- MTN Uganda has declared its first quarterly dividend of 8.5 Ugandan shillings (Sh0.2927) per share amounting to a total of Sh6.5 billion.

The new dividend will be paid on June 19 to shareholders who will be on record as of June 1.

The telco, listed on the Uganda Securities Exchange and having Kenyan shareholders among other nationalities, previously paid three dividends starting from the half year.

MTN reported a 3.8 percent drop in net profit to Sh5.99 billion in the first quarter ended March, with the company attributing the performance on weaker-than-expected sales growth.

"Profit after tax declined by 3.8 percent to Ush174 billion (Sh5.99 billion) with a profit margin of 19 percent as a result of moderate revenue...