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Airtel Uganda posted total revenue of UGX 966 billion in the first half of 2024, and a final profit of UGX 153 billion largely driven by data and voice revenue.
The voice segment contributed a large chunk of the revenue at UGX 526 billion closely followed by data revenue at UGX 403 billion with other value-added services contributing UGX 36 billion.
Airtel’s voice revenues grew by 12 percent year-on-year on the back of the continued growth in customer acquisitions backed by a regional acquisitions strategy, and the benefit of usage and retention initiatives that resulted in overall 2.4 percent growth in the minutes of usage on the network coupled with the continued network expansion across the country.
Overall, voice revenue contribution to service revenue improved to 54.8 percent from 54.4 percent for the period ended. Airtel expects an improved momentum in voice revenue trends as the year progresses.
The telecom continues to consolidate its position in the data segment which grew by 12.8 percent Year-on-Year anchored by 5.9 percent growth in overall data customers to 6 million.
The continued investment in network expansion and enhancement coupled with overall smartphone penetration improvement strategy has seen overall growth in data usage per subscriber by 13.9 percent and total traffic on the network increased by 27.2 percent over the period, with 4G traffic amounting to 80.4 percent of the total data traffic carried across our network.
The overall data revenue contribution to the total service revenues increased to 42.0% from 41.4% in the prior period.
In the second quarter of the year, Airtel registered an increase in data usage per customer by 11.7% sequentially, signaling continued recovery and better growth through the second half of the year due to the increasing popularity of our data product offerings.
Airtel’s overall revenue grew by 11.6% on a Year-on-Year basis for the period ended 30 June 2024 mainly driven by an overall improvement in customer Average Revenue Per User (ARPU) of 3.8 percent due to continued growth in usage across the different segments.
“We have seen continued success on our home broadband segment with encouraging growth in our customer base. We have increased our overall fibre network to 5,859 km, supporting data traffic growth and faster speeds across the network. Furthermore, this expansion in our fibre network will continue to support growth in our enterprise business offerings which remains a key strategic focus,” a statement reads in part from the half-year financial report.
Expenses
The telco’s depreciation and amortisation costs for the period rose by 10.7 percent Year-on-Year driven by the continued investments in network sites and the retail footprint to support future growth efforts.
The net finance costs for the period also increased by 23.3 percent, primarily due to higher interest costs on increased lease liabilities following the roll out of 140 new sites, which led to increase in cost by 19.8 percent over the year. These are costs necessary for densification (meshing) of the network as the customer base and usage grows.
Managing Director’s opinion on performance
Airtel Outgoing Managing Director, Manoj Murali, in a statement said the telco began 2024 with the shared confidence Ugandans expressed in the telecom business during the Airtel IPO that closed at the end of 2023.
“We have registered 11.6% growth in revenue and a 3.3% growth in EBITDA Year-on-Year, underpinned by our strong distribution network of partners and agents across the country. 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,” Manoj said.
Manoj noted that during the half- year period, the company’s focused investment strategy continued to underpin incremental customer and revenue growth.
“We have rolled out an additional 140 4G sites supporting our commitment to enhancing digital inclusion over the long-term and driving enhanced customer service. Currently, 100% of our sites are 4G enabled,” Manoj explained.
The telco’s MyAirtel App has also been enhanced with new features to improve the experience of the customers with continuous effort on educating data customers on how to use the MyAirtel App to identify their data usage, they are now able to track their daily,
weekly and monthly usage, leading to an enhanced customer satisfaction index.
Future Outlook
Airtel Uganda’s focus remains on providing best in class customer experience through the digital revolution and continued strategic investments.
The telco’s commitment to network upgrades and fibre expansion sets the stage for a year focused on innovation and enhanced connectivity extending its reach to every corner, prioritising distribution channels in remote rural areas, ensuring that quality telecommunication services are accessible to all Ugandans.
“To elevate customer experience, we have increased company-owned stores, solidifying Airtel Uganda as the premier provider across the country. This expansion enhances direct access for customers, reinforcing our dedication to accessible and cutting-edge services,” Manoj says.
Manoj adds that the telco’s innovative products are designed to meet diverse consumer needs, emphasise the affordability of our offerings and showcase their ease of use using a customer centric approach to promote digitisation through the MyAirtel App, empowering users with self service capabilities.
In addition, the Airtel TV App caters to infotainment needs ensuring a seamless blend of connectivity and entertainment.
Looking ahead to the year, Airtel Uganda shows commitment to driving digital inclusion, fostering economic growth, and creating a sustainable society. Through technological advancements and customer focused solutions, the telco aims to continue leading the digital transformation in Uganda, enriching lives and connecting communities across the nation.
“With the objective to maximize our shareholders’ returns, we will continue to maintain leverage at an efficient level, manage costs through our ‘war on waste’ initiatives and optimise capital investments for the remainder of the year,” Manoj says.