Airtel Uganda has posted a 28.7% increase in after-tax profit for the first half of 2025, buoyed by strong growth in data services that offset a decline in voice revenues.
The telecom firm reported a profit after tax of shs 197.2 billion, up from shs 153.2 billion in the same period last year. Revenues grew 12.3% to shs 1.08 trillion, supported by a growing subscriber base and rising demand for internet services.
Voice revenues, however, dropped 2% year-on-year, reflecting the cut in interconnect rates from shs 45 to shs 26 imposed in September 2024. As a result, voice’s contribution to total revenue fell to 47.9%, down from 54.8% a year earlier.
The trend mirrors a global shift. According to the Global System for Mobile Communications Association (GSMA), voice revenues worldwide continue to shrink as consumers adopt cheaper and more convenient digital alternatives.
By contrast, Airtel Uganda’s data revenues surged more than 30%, cementing data as the company’s biggest growth driver.
Cost efficiency also boosted performance, with operating expenses rising by just 5.5%. This helped earnings before interest, tax, depreciation and amortisation (EBITDA) climb 19.3% to shs 567.3 billion, while EBITDA margins expanded to 52.3%, up from 49.2% last year.
Shareholders will benefit from these gains. The Board declared an interim dividend of shs 174 billion, equivalent to shs 4.35 per share—an increase of 31.8% compared to 2024.
Leverage rose to 1.7 times EBITDA due to tower lease extensions, but lease-adjusted leverage improved to 0.77, reflecting a healthy balance sheet.
Capital expenditure of shs 87.8 billion went into network upgrades and new sites in districts such as Kabale, Lira and Tororo. Airtel says the rollout is part of a strategy to strengthen its already nationwide 4G coverage while accelerating 5G and fibre expansion in urban centres including Kampala.
For investors, the results highlight Airtel Uganda’s resilience and capacity to deliver strong returns despite regulatory headwinds. For the wider market, the performance underscores the telecom sector’s definitive shift to data as the core of future growth.
Notably, the National Social Security Fund (NSSF) realised gains of more than shs 50.3 billion from its investment in Airtel shares, reinforcing confidence in the Uganda Securities Exchange and supporting vibrant local ownership of listed firms.
