Airtel Uganda posts 6.5% decline in net profit for H1, 2024

The telco’s revenue grew to Shs 960 billion, supported by its robust distribution network of partners and agents

Kampala Uganda | THE INDEPENDENT | Airtel Uganda reported a 6.5% decline in net profit to Shs 153.2 billion for H1 2024, on the back of increased operating expenses, particularly in access charges, employee benefits, and sales and marketing costs.

The financial results, released last week, reveal that access charges doubled from Shs 26.2 billion to Shs 52.1 billion. Employee benefit expenses also surged by Shs 5 billion, reaching Shs 42.5 billion during the period under review, while sales and marketing expenses climbed from Shs 94.3 billion to Shs 110 billion.

However, the telco’s service revenue grew by 11.6% to Shs 960 billion, supported by its robust distribution network of partners and agents nationwide.

“Additionally, the home broadband segment is registering impressive growth supported by increasingly stable and faster data speeds and our expanding 5G network combined with accelerated 5G router rollout, to provide an enhanced customer experience,” the telecom said in an accompanying statement.

“Our focused investment strategy continues to drive incremental customer and revenue growth,” the company stated. “During the period, we rolled out an additional 140 4G sites, supporting our commitment to long-term digital inclusion and improved customer service. Currently, 100% of our sites are 4G-enabled.”

Airtel Uganda it also enhanced the MyAirtel App with new features to better serve its customers. “By educating our data customers on how to use the MyAirtel App to track their data usage, they can now monitor their daily, weekly, and monthly usage, resulting in a higher customer satisfaction index,” the company added.

The telecom did not disclose customer numbers or revenue performance for its telco and fintech segments.

On the other hand, MTN Uganda reported a 29.7% growth in net profit, reaching Shs 295.7 billion for H1 2024. This growth was fueled by robust performance in voice, data, and fintech services.

Voice revenues rose by 15.1% to Shs 626.7 billion, while data and fintech services saw increases of 28.6% and 23.5%, respectively, reaching Shs 373.3 billion and Shs 442.3 billion. Overall, MTN Uganda’s service revenue surged by 20.4% to Shs 1.5 trillion, supported by a 14.6% increase in mobile subscribers, now totaling 20.7 million.

Airtel Uganda, which, like MTN Uganda, is listed on the Uganda Securities Exchange, excluded its fintech business from the Initial Public Offering (IPO).

The IPO saw a 45.55% undersubscription, and Airtel Uganda plans to sell the remaining shares to meet regulatory requirements. Uganda’s broadband policy mandates that telecommunications companies list at least 20% of their equity on the local stock exchange.

David Birungi, the company’s spokesperson, confirmed to Techpoint.Africa in July this year that Airtel Uganda is committed to complying with national regulations and aims to achieve full compliance by November 2026.

In March this year, Airtel Uganda declared a final dividend of Shs 86 billion following a 9.6% decline in profit for the year ending December 2023. The company’s total revenues grew by 11.5% to Shs 1.7 trillion due to strong performance in its core voice and data business.

In a socio-economic initiative, Airtel Uganda, in partnership with UNICEF Uganda, said it connected 60 additional schools to the internet, benefiting over 40,200 students and 1,741 teachers nationwide.

The company also held the Airtel Kabaka Birthday Run 11th Edition to rally community support for the goal of ending HIV/AIDS by 2030. Airtel entered the Ugandan market as Celtel Uganda in 1995.

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