Airtel Uganda's profit after tax rose 13.9% to Shs224.7 billion in the six months ended June 30, 2026, as strong data demand, customer growth and cost efficiencies lifted the telecom company's performance.
According to the financial results, company's profit margin improved to 18.8% from 18.2% in the corresponding period last year, despite higher finance costs arising mainly from adverse exchange-rate movements and increased interest on lease liabilities.
Revenue grew by 10.2% to Shs1.1949 trillion, with data emerging as a major driver of growth. Data revenue increased by 16.1% to Shs610.6 billion, while voice revenue grew by 6.6%.
The growth came despite a reduction in interconnect rates from Shs26 to Shs22.5 and the temporary shutdown of internet services during Uganda's January 2026 general elections.
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Airtel Uganda Managing Director and CEO Soumendra Sahu said the company's performance reflected continued growth in demand for digital services and sustained investment in its network.
"The first half of 2026 was marked by continued resilience and growing confidence in Uganda's economy amid a challenging global environment."
Sahu said the company's service revenue grew by 10.9% during the period, while EBITDA increased by 13.4%, with the EBITDA margin rising to 53.9% from 52.3% a year earlier.
"Data revenue grew 16.1% on the backdrop of our strong performance in the Home Broadband segment where we strengthened our go-to-market strategy, and an 18.8% growth in Data customers for the period."
Airtel Uganda's total customer base increased by 10% to 19.7 million, while data customers grew by 18.8% to 8.9 million.
Data usage per customer increased by 21% to 7.2GB, while data traffic across the network surged by 42.1%. Smartphone penetration also rose by 676 basis points to 46.6%.
The company's EBITDA increased by 13.4% to Shs643.5 billion, with the stronger margin attributed to operating momentum and continued cost-efficiency measures.
Increased investment in network
Airtel Uganda significantly accelerated its infrastructure investment during the period, spending Shs160.5 billion in capital expenditure, an 82.9% increase from Shs87.8 billion in the first half of 2025.
The company deployed 494 additional 4G sites, 384 5G sites and 1,621 kilometres of fibre during the six months.
By June 30, all Airtel Uganda sites were 4G-enabled, while the company's 5G network had reached 584 sites across key cities.
Sahu said the investment was aimed at improving coverage, capacity and customer experience.
"We remained focused on enhancing customer experience through broader network coverage, improved service quality and products tailored to evolving customer needs."
The company also extended broadband connectivity to more than 57,000 homes and small businesses, representing a 64% increase during the period.
Airtel Uganda is additionally testing Direct-to-Cell satellite technology in partnership with Starlink, following regulatory approval, as it explores satellite connectivity as another means of expanding coverage.
Airtel declares Shs196bn half-year dividend
The strong earnings performance is also set to benefit shareholders.
The Board declared an interim dividend of Shs3.1 per share, equivalent to Shs124 billion, for the quarter ended June 30, 2026.
This brings the total dividend for the first half of 2026 to Shs4.90 per share, or Shs196 billion, representing a 12.6% increase year-on-year.
Airtel Uganda's leverage also improved to 1.5 times from 1.7 times, while leverage excluding lease liabilities declined to 0.63 times from 0.77 times a year earlier.
Beyond its commercial performance, Airtel Uganda said it continued to support digital inclusion and national development. In May, the company remitted Shs42.9 billion to the Uganda Communications Universal Service and Access Fund (UCUSAF).
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Sahu said Airtel's contribution to Uganda went beyond providing telecommunications services.
"Airtel's contribution goes beyond compliance with our licence obligations. It is a deliberate and strategic investment in Uganda's digital future."
He added that the company remained committed to expanding connectivity and supporting inclusive growth.
"We remain committed to doing even more in the years ahead, further cementing our multi-year commitment to driving digital inclusion through sustained investment in ICT infrastructure across Uganda."
Looking ahead, Sahu said Airtel Uganda remained optimistic about the country's economic prospects, citing rising digital adoption, favourable demographics and continued economic growth.
"We will continue to invest in network excellence, innovation and customer experience to support sustainable growth and create long-term value for all stakeholders."
