Airtel Uganda’s latest network mast deployment supports the company’s 12% voice revenue growth and 12.8% data revenue increase, solidifying its position in Uganda’s telecom market
KAMPALA, UGANDA – Airtel Uganda, one of the country’s leading telecommunications companies, has reported impressive growth in its half-year results, driven by its aggressive network expansion and customer acquisition strategies.
The company’s revenue grew 11.6% to Ushs 966.1 billion for the six months ended June 30, 2024, with voice revenue increasing 12% to Ushs 526.1 billion and data revenue growing 12.8% to Ushs 403.1 billion.
Airtel Uganda’s customer base expanded 9.3% to 15.6 million, with data customers growing 5.9% to 6 million. The company’s average revenue per user (ARPU) rose 3.8%, driven by increased usage and retention initiatives.
This expansion has enabled Airtel Uganda to enhance its network capacity, providing seamless connectivity to its growing customer base.
However, the same figures also show that Airtel Uganda’s net finance costs rose by 23.3% due to higher interest costs on increased lease liabilities following the rollout of 140 new sites.
David Birungi, Head of PR and Corporate Communications at Airtel Uganda told PML Daily that the company’s network expansion has been a key driver of growth, with the company investing UGX 122.1 billion in capital expenditures during the period. The company’s fiber network now spans 5,859 km, supporting data traffic growth and faster speeds across the network.
“This is mainly driven by the continued densification of our network across the country,” said Birungi. “Densification is the increase in the capacity of a network site to carry more traffic and value-added services. These investments are necessary to support the current growth, but also future-proof our growth ambitions.”
The company’s customer acquisition strategy has also yielded positive results, with gross additions increasing 20.1% year-on-year. Airtel Uganda’s customer retention initiatives have also been successful, with churn rates declining, according to results.
During the same period, Airtel Uganda has since introduced various products and services, including affordable data bundles and voice packages, to cater to the diverse needs of its growing customers.
Dividends
Airtel Uganda has since declared an impressive dividend payout of UGX 132 billion for the half-year ended June 30, 2024.
The dividend payout, representing UGX 3.30 per share, demonstrates Airtel Uganda’s commitment to delivering value to its shareholders. The company’s board of directors authorized the payment of an interim dividend of UGX 86 billion for the quarter ending June 30, 2024.
“Airtel Uganda’s dividend payout reflects our strong financial performance and our commitment to rewarding our shareholders,” said Manoj Murali, Airtel Uganda’s Managing Director. “We are confident that our strategic investments in network expansion and customer acquisition will continue to drive growth and deliver long-term value to our shareholders.”
Airtel Uganda’s impressive dividend payout of Ushs 132 billion for the half-year ended June 2024, representing Ushs 3.30 per share, underscores the company’s financial resilience and gives shareholder value.
Notably, this payout surpasses MTN Uganda’s dividend distribution for the same period, with Airtel Uganda’s UGX 132 billion closely matching MTN’s Ushs 147 billion.
This achievement is particularly remarkable, considering Airtel Uganda’s payout represents approximately 90% of MTN’s dividend, demonstrating the company’s strong financial performance and ability to generate cash.
This dividend payout not only rewards shareholders but also reflects Airtel Uganda’s confidence in its growth prospects, driven by its strategic investments in network expansion and customer acquisition.
Key highlights of Airtel Uganda’s half-year performance include:
Revenue growth of 11.6% to Ushs 966.1 billion
Voice revenue growth of 12% to Ushs 526.1 billion
Data revenue growth of 12.8% to Ushs 403.1 billion
Customer base growth of 9.3% to 15.6 million
Data customers growth of 5.9% to 6 million
ARPU growth of 3.8%
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