Overview:
Airtel Uganda's profits soar, reflecting a global telecom trend as data services become the main driver of growth, surpassing traditional voice revenue.
Airtel Uganda has announced a significant increase in its half-year profits, driven by a surge in data service revenue that compensated for a decline in traditional voice calls.
The telecom giant reported a 28.7% rise in after-tax profit to 197.2 billion Ugandan shillings for the first half of 2025, up from 153.2 billion shillings the previous year. This was underpinned by a 12.3% increase in overall revenue to 1.08 trillion shillings, according to the company.
While the subscriber base continued to grow, the report highlights a global trend in telecommunications: the shift away from voice services. Airtel Uganda’s voice revenues fell by 2%, primarily due to a regulatory decision in September 2024 that cut interconnect rates. As a result, the contribution of voice to total revenue dropped to 47.9% from 54.8% a year earlier.
In contrast, data revenues surged by more than 30%, becoming the main driver of growth for the company. This performance is consistent with the broader industry trend where customers are increasingly opting for digital communication alternatives.
The company also focused on cost efficiency, with operating expenses increasing by only 5.5%. This helped boost EBITDA (earnings before interest, taxes, depreciation, and amortisation) by 19.3% to 567.3 billion shillings, with EBITDA margins expanding to 52.3%.
In a move to reward shareholders, the board has declared an interim dividend of 174 billion shillings, a 31.8% increase on the previous year.
Airtel Uganda invested 87.8 billion shillings in its network, supporting major upgrades and commissioning new sites in various districts, including Kabale, Lira, and Tororo. The company stated it has achieved 100% 4G coverage and is continuing to expand its 5G and fibre infrastructure in urban areas like Kampala.
The National Social Security Fund’s notable gain of over 50.3 billion shillings on its investment in Airtel shares underscores confidence in the Uganda Securities Exchange and local capital markets.