Airtel Uganda reported a 28.7% increase in after-tax profit for the first half of 2025, driven by strong data service growth, which offset a decline in voice revenues.
The company posted a profit after tax of Shs197.2 billion, up from Shs153.2 billion a year earlier. Revenues rose 12.3% to Shs1.08 trillion, boosted by a growing subscriber base and rising demand for internet services.
However, voice revenues fell 2% year-on-year, reflecting a reduction in interconnect rates from Shs45 to Shs26, which took effect in September 2024. Consequently, voice’s share of total revenue dropped to 47.9%, compared to 54.8% during the same period last year.
This decline in voice revenue mirrors a global trend, where voice revenues have steadily decreased. According to the Global System for Mobile Communications Association (GSMA), this decline is driven by the growing use of alternative communication services, with voice now making up a smaller portion of telecom revenue as customers increasingly prefer more convenient and cost-effective digital alternatives.
In contrast, Airtel Uganda’s data revenues grew by over 30%, solidifying data as the company’s largest growth driver.
The company's focus on cost efficiency also paid off, with operating expenses rising only 5.5%, enabling EBITDA to grow by 19.3% to Shs567.3 billion. EBITDA margins expanded to 52.3%, up from 49.2% a year ago.
Shareholders will benefit from an interim dividend of Shs174 billion, equivalent to Shs4.35 per share, a 31.8% increase on last year.
Although leverage rose to 1.7 times EBITDA due to tower lease extensions, lease-adjusted leverage improved to 0.77, indicating a strong financial position.
Capital expenditure of Shs87.8 billion supported network upgrades and the commissioning of new sites in districts such as Kabale, Lira, and Tororo. This investment reflects strategic rollout efficiency, with 100% 4G coverage already achieved and ongoing expansion of 5G and fibre infrastructure in urban areas like Kampala.
For investors, these results highlight Airtel Uganda's resilience and its ability to maintain strong profit growth despite regulatory challenges. For the broader market, the performance emphasises the shift towards data as the core of the telecom sector’s future.
Moreover, the NSSF’s impressive gains of over Shs50.3 billion from its investment in Airtel shares offer a strong vote of confidence in the Uganda Securities Exchange, reinforcing local ownership and supporting the development of the nation’s capital markets.