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Airtel Uganda reported a 28.7% increase in after-tax profit for the first half of 2025, driven by strong growth in data services, which compensated for a decline in voice revenues.
The telecom company posted a profit after tax of Ushs 197.2 billion, up from Ushs 153.2 billion in the same period last year.
Revenues rose by 12.3%, reaching Ushs 1.08 trillion, supported by a growing subscriber base and increased demand for internet services.
However, voice revenues fell by 2% year-on-year, following a reduction in interconnect rates from Ushs 45 to Ushs 26 in September 2024.
As a result, the contribution of voice revenues to total revenue dropped to 47.9%, down from 54.8% in the same period last year.
This decline in voice revenues mirrors a global trend, as the Global System for Mobile Communications Association (GSMA) notes that voice revenue is shrinking worldwide.
This is primarily due to the increasing adoption of alternative communication services, with voice now representing a smaller share of telecom revenue as customers opt for more convenient and cost-effective digital alternatives.
Airtel Uganda’s data revenues, however, grew by over 30%, solidifying data as the company’s largest growth driver.
The firm’s focus on cost efficiency also paid off, with operating expenses increasing by just 5.5%, contributing to a 19.3% rise in EBITDA to Ushs 567.3 billion.
EBITDA margins improved to 52.3%, up from 49.2% last year.
Shareholders will benefit from the board’s declaration of an interim dividend of Ushs 174 billion, which equates to Ushs 4.35 per share, a 31.8% increase compared to last year.
Although leverage increased to 1.7 times EBITDA due to tower lease extensions, lease-adjusted leverage improved to 0.77, indicating a healthy financial position.
The company’s capital expenditure of Ushs 87.8 billion supported significant 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 capacity to deliver strong profit growth despite regulatory challenges.
For the broader market, the performance underscores the shift towards data as the future core of the telecom sector.
Additionally, the NSSF’s impressive gains of over UGX 50.3 billion from 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 country’s capital markets.