Data powers Airtel Uganda to Shs224.7bn profit

Airtel Uganda’s profit has risen by 13.9% to Shs224.7bn ($60m) in the first half of the year, as more customers used data services and the company’s subscriber base grew.

The telecoms operator said profit after tax rose from Shs197.2bn in the same period last year, in results for the six months to the end of June.

Revenue grew by 10.2% to Shs1.19tn ($320m), up from Shs1.08tn a year earlier.

Data was the biggest driver of growth. Data revenue rose by 16.1% to Shs610.6bn, while voice revenue grew by 6.6%.

The number of data customers increased by 18.8% to 8.9 million, and the total customer base grew by 10% to 19.7 million. Each customer used 21% more data, at 7.2 gigabytes, and total data traffic on the network grew by 42.1%.

Data now makes up 51.1% of Airtel Uganda’s service revenue, up from 48.8% a year earlier. Voice’s share has fallen to 46%, which the company said reflected customers shifting towards digital services.

That shift has been building since 2025, when a cut in mobile interconnect rates – the fees operators charge each other to connect calls – to Shs26 from Shs45 put pressure on voice revenue.

Smartphone use rose to 46.6% of customers, supporting demand for mobile internet. The company’s home broadband business grew its customer base by 46.5%, connecting more than 57,000 homes and small businesses – an increase of 64%.

Managing director and chief executive Soumendra Sahu said the company had performed well despite a difficult trading environment.

“The first half of 2026 was marked by continued resilience and growing confidence in Uganda’s economy amid a challenging global environment,” he said.

He said service revenue had grown by 10.9%, while earnings before interest, tax, depreciation and amortisation (Ebitda) – a measure of underlying profit – rose by 13.4%.

Airtel Uganda increased its spending on the network by 82.9% to Shs160.5bn, up from Shs87.8bn a year earlier. The money paid for 494 new 4G sites, 384 5G sites and 1,621km of fibre-optic cable.

All of the company’s sites could carry 4G by the end of June, while its 5G network had reached 584 sites in major cities.

The company is also testing satellite technology with Starlink, which would allow mobile phones to connect directly to satellites. It hopes this will help it reach areas that are hard to cover with conventional networks.

Airtel Uganda’s board recommended an interim dividend of Shs3.10 a share for the second quarter, bringing the total for the first half to Shs4.90 a share, or Shs196bn. That is 12.6% more than a year earlier.

In May, the company paid Shs42.9bn to a government fund that supports the expansion of communications services across Uganda.

Mr Sahu said the company remained optimistic about Uganda’s economy, pointing to rising use of digital services and a young population.

“We will continue to invest in network excellence, innovation and customer experience to support sustainable growth and create long-term value for all stakeholders,” he said.