The Independent Uganda: You get the Truth we Pay the Price
The operator reported a 28.8% rise in half-year profit, reaching Shs 197.2 billion as more Ugandans surf the internet rather than chat
Kampala, Uganda | THE INDEPENDENT | Airtel Uganda is proving that in telecommunications, data, not voice, is now king. The operator reported a 28.7% rise in half-year profit, reaching Shs 197.2 billion as more Ugandans surf the internet rather than chat.
Airtel’s financial results exclude those of its fintech unit, Airtel Mobile Commerce Uganda Ltd. Revenue grew 12.3% to 1.08 trillion shillings, lifted by a 14.7% jump in subscribers to 17.9 million.
The surge is largely digital. Internet revenue shot up 30.4% to Shs 525.7 billion, with the number of data subscribers climbing to 7.5 million. Smartphone penetration is approaching 40%, and average monthly usage per customer has risen 22.6% to 5.95 gigabytes. Total data traffic more than doubled in two years, reflecting a broader appetite for connectivity.
Voice calls, by contrast, are losing their luster. Revenue fell 2% to Shs 515.4 billion, dragged down by a regulatory cut in interconnect fees. Average revenue per user (ARPU) dipped 3% to Shs 10,321. In other words, customers are talking less and scrolling more, and regulators are cutting operators’ margins in the process.
Interestingly, Airtel has managed to keep its books healthy. Operating profit before interest, tax, depreciation and amortisation (EBITDA) rose 19.3% to Shs 567.3 billion, with margins widening to 52.3% from 49.2% a year earlier. Cost discipline and a modest rise in expenses helped. The company also declared an interim dividend of Shs 174 billion, up almost a third.
Airtel Uganda’s Managing Director, Soumendra Sahu, credits the strategy of “investing in customers’ experience” for the robust performance.
“In addition to enhancing the network experience for our customers, we are deeply committed to simplifying the customer journey across all our touchpoints—because we understand that every interaction matters, and we genuinely care about making each one safe and valued,” Sahu said.
The firm is betting that happier, better-connected subscribers will pay off faster than regulatory headaches and stiff competition.
Capex fell
The firm’s investment in infrastructure continues, albeit more frugally. Capital expenditure fell 28% to Shs 87.8 billion, but the operator added 176 4G and 150 5G sites, achieving full 4G coverage and expanding fibre by 1,793 km. Its network, it claims, now reaches nearly 99% of the population. Broadband usage is booming: active 4G and 5G router users jumped 158%, while corporate fibre services grew steadily.
Innovation is another pillar. Airtel launched Africa’s first AI-based spam alert service and pushed smartphone adoption through device financing. Its MyAirtel app now counts 1.25 million monthly active users. Social responsibility remains on the agenda, too: in partnership with UNICEF, the company connected 133 additional schools, reaching more than 40,000 learners.
Airtel’s performance is notable against the backdrop of a larger rival, MTN Uganda, which reported Shs 1.7 trillion in revenue and Shs 267 billion in profit. MTN retained the lead on both revenue and margins, posting 53.7% against Airtel’s 52.3%, underscoring the efficiency of its operations.
Analysts note that the battle in Uganda is increasingly over data and digital ecosystems rather than voice minutes.
Future outlook
Looking ahead, operators face a balancing act. Rising internet penetration and a stable shilling support growth, but average revenue per user is under pressure from regulatory cuts and fierce competition.
Both Airtel and MTN will need to fund 5G and fibre rollouts while keeping shareholders happy. So far, disciplined costs and robust data demand suggest that the winners will be those who can monetise the digital appetite of Uganda’s increasingly connected population.
