Summary:

• Airtel Uganda reported a 9.6% profit decline in 2023 but still declared a final dividend of Ush86 billion ($22 million), adding to the earlier interim dividend. Despite missing its dividend target, the company met its 95% payout ratio. Higher costs affected earnings, but total revenues grew by 11.5%, driven by core voice and data business. Unlike peers, Airtel Uganda doesn’t offer mobile money services.

Airtel Uganda announced a final dividend of Ush86 billion ($22 million) despite a 9.6 percent profit decline in 2023. This adds to the earlier Ush76 billion ($19.45 million) interim dividend declared after the company’s IPO in November last year. In total, Airtel Uganda has distributed Ush162 billion ($41.47 million) since going public.

The company pledged to allocate at least 95 percent of its annual net profit or retained earnings as dividends to shareholders and aimed to pay up to Ush500 billion ($127.98 million) in dividends for the reviewed period. However, it fell short of the target, though meeting the 95 percent payout ratio of its net income, which declined to Ush296.95 billion ($76 million) from Ush325.7 billion ($83.37 million) the previous year.

Airtel Uganda’s earnings in 2023 were affected by higher costs, with operating expenses and network expenses increasing notably. Despite this, total revenues rose by 11.5 percent to Ush1.7 trillion ($455 million), driven by growth in core voice and data business.

The company highlighted substantial growth in data revenue, value-added services, and voice revenue, attributing it to increased data usage and voice calls. However, unlike many telcos in the region, Airtel Uganda does not offer mobile money services; this function is managed by an affiliate of its parent company, Airtel Africa.