Airtel Uganda’s financial results for the first half of 2025 have shown impressive growth, with a 28.7% increase in after-tax profit to Ushs 197.2 billion. This surge is largely attributed to the strong performance of data services, which offset the decline in voice revenues. The company’s revenue rose 12.3% to Ushs 1.08 trillion, driven by a growing subscriber base and increasing demand for internet services.
The decline in voice revenues, which dropped 2% year-on-year, is largely due to the reduction in interconnect rates from Ushs 45 to Ushs 26 imposed in September 2024. However, data revenues grew by over 30%, becoming the company’s largest growth driver. Airtel Uganda’s focus on cost efficiency also paid off, with operating expenses increasing by only 5.5%, resulting in a 19.3% rise in EBITDA to Ushs 567.3 billion.
The company’s financial position remains healthy, with a leverage ratio of 1.7 times EBITDA and lease-adjusted leverage of 0.77. Airtel Uganda’s capital expenditure of Ushs 87.8 billion supported major network upgrades and the commissioning of new sites in several districts. The company has achieved 100% 4G coverage and is expanding its 5G and fibre infrastructure in urban areas like Kampala.
The Board has declared an interim dividend of Ushs 174 billion, equivalent to Ushs 4.35 per share, a 31.8% increase from last year. This impressive performance demonstrates Airtel Uganda’s resilience and ability to deliver strong profit growth despite regulatory challenges. The results also underscore the shift towards data as the core of the telecom sector’s future and reinforce the potential of the Uganda Securities Exchange.
Leave a Reply