Airtel Uganda has posted a 28.7% jump in after-tax profit for the first half of 2025, buoyed by strong growth in data services, which offset a fall in voice revenues.
The telecom firm reported a profit after tax of Ushs 197.2 billion, up from Ushs 153.2 billion a year earlier. Revenues rose 12.3% to Ushs 1.08 trillion, supported by a growing subscriber base and rising demand for internet services.
Voice revenues, however, fell 2% year-on-year, reflecting the cut in interconnect rates from Ushs 45 to Ushs 26 imposed in September 2024. As a result, voice’s contribution to total revenue dropped to 47.9%, compared to 54.8% in the same period last year.
Compared to the global trend, Airtel Uganda’s experience reflects a wider pattern, as voice revenues worldwide have been steadily declining. According to the Global System for Mobile Communications Association (GSMA), this decline is largely driven by the growing adoption of alternative communication services, with voice now accounting for a smaller share of total telecom revenue as customers increasingly turn to more convenient and cost-effective digital alternatives.
Airtel Uganda’s data revenues, on the other hand, grew by more than 30%, cementing their place as Airtel’s largest growth driver.
The company’s focus on cost efficiency also paid off, with operating expenses increasing by only 5.5%, helping EBITDA rise 19.3% to Ushs 567.3 billion. EBITDA margins expanded to 52.3%, up from 49.2% a year ago.
Shareholders will see the benefits. The Board declared an interim dividend of Ushs 174 billion, equivalent to Ushs 4.35 per share, a 31.8% increase on last year.
While leverage rose to 1.7 times EBITDA due to tower lease extensions, lease-adjusted leverage improved to 0.77, suggesting a healthy financial position.
The company’s capital expenditure of Ushs 87.8 billion supported major network upgrades and the commissioning of new sites in districts including 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 demonstrate Airtel Uganda’s resilience and its ability to deliver strong profit growth despite regulatory headwinds. For the broader market, the performance underscores the definitive shift to data as the core of the telecom sector’s future.
Furthermore, the NSSF’s impressive gains of over UGX 50.3 billion on its investment in Airtel shares serve as a strong vote of confidence in the Uganda Securities Exchange, reinforcing vibrant local ownership and supporting the continued development of the nation’s capital markets.
