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Telecommunications industry

Airtel Uganda Posts 28.7% Jump in After-Tax Profit

Strategic Insights

— 1 min read

Airtel Uganda has registered a significant increase in its after-tax profit for the first half of 2025, driven by robust growth in data services that offset a decline in voice revenues. The telecom operator reported a profit after tax of Ushs 197.2 billion, up from Ushs 153.2 billion in the same period last year. The growth in data services, including internet and mobile broadband, has contributed significantly to the increase in revenues, which rose by 12.3% to Ushs 1.08 trillion.

Key Takeaways:

  • Airtel Uganda's after-tax profit for the first half of 2025 jumped by 28.7% year-over-year, driven by strong growth in data services.
  • The company's profit after tax increased to Ushs 197.2 billion from Ushs 153.2 billion in the same period last year.
  • Revenues rose by 12.3% to Ushs 1.08 trillion, supported by a growing subscriber base and rising demand for internet services.
  • Voice revenues, however, fell by 2% year-over-year, reflecting the cut in interconnect rates from Ushs 45 to Ushs 26 imposed in September 2024.
  • Airtel Uganda's data revenues grew by more than 30%, cementing their place as the largest growth driver for the company.
  • The company's focus on cost efficiency paid off, with operating expenses increasing by only 5.5% and EBITDA rising 19.3% to Ushs 567.3 billion.
  • EBITDA margins expanded to 52.3%, up from 49.2% a year ago.
  • Shareholders will benefit from the interim dividend of Ushs 174 billion, equivalent to Ushs 4.35 per share.
  • Leverage rose to 1.7 times EBITDA due to tower lease extensions, but lease-adjusted leverage improved to 0.77, suggesting a healthy financial position.

Statistics:

  • After-tax profit for the first half of 2025: Ushs 197.2 billion
  • Growth in data services: over 30%
  • Increase in revenues: 12.3%
  • Decline in voice revenues: 2% year-over-year
  • Operating expenses growth rate: 5.5%
  • EBITDA growth rate: 19.3% to Ushs 567.3 billion
  • EBITDA margins expansion: from 49.2% to 52.3%
  • Interim dividend: Ushs 174 billion, equivalent to Ushs 4.35 per share
  • Leverage: 1.7 times EBITDA
  • Lease-adjusted leverage: 0.77

Sources:

  • Airtel Uganda's official press release (date not specified)
  • Global System for Mobile Communications Association (GSMA) report (date not specified)
  • Uganda Securities Exchange (USE) press release (date not specified)
  • Airtel Uganda's financial statements for the first half of 2025 (date not specified)

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