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Airtel's net profits of shillings 296 billion for the period ending December 2023 fell short of the projected sh457b presented to investors ahead of its initial public offering (IPO) last year at the Uganda Securities Exchange (USE).

The results published on March 4 left market analysts wondering how the variance between the projected net profits in the IPO prospectus and the actual figures in the full-year earnings report could be so significant.

Despite this, the company's directors have recommended a final dividend of sh2.15 per share for its shareholders.

“The Directors of Airtel Uganda recommended a final total dividend of sh86b, or sh2.15 per share for the year ended December 31, 2023, based on the company’s cumulative retained earnings as of December 31, 2023,” the telecom firm announced.

“The dividends if approved at the annual general members meeting, will be paid on or about April 15 2024 to shareholders whose names appear on the share register at the close of business on March 26.”

According to its financial results, Airtel reported that revenues increased by 11.48% to sh1.7 trillion in 2023, up from sh1.5 trillion the previous year. Airtel noted significant growth in data revenue and value-added services over the past year, reaching sh776b compared to sh657b in 2022.

“This increase was primarily driven by a rise in data usage, with more customers accessing data services. Voice revenue also experienced growth, reaching sh899b from sh870b in 2022. The total minutes of voice calls also increased by 6.7% compared to the previous year,” Airtel said.

The cost of sales rose by 26.98% to sh424b from sh333b the previous year. Profit after tax was sh296b, 8.83% below the sh325b reported in 2022. Total assets increased by 11.68% to sh2.2 trillion from sh1.9 trillion in 2022.

Airtel Uganda, which had set high hopes for its IPO, managed to raise slightly over sh211b at a subscription rate of 54.45%. These results were shot of the sh800b it had projected.

Airtel offered 20%, equivalent to 8,000,000,000 ordinary shares, to the public on the USE in November last year. 

The National Social Security Fund (NSSF) took up a 10.55% stake in Airtel, representing sh199b, while retail investors held only 0.34% of the shares.

The Airtel IPO managed to meet and list 10.9% compared to the 20% free float requirement under the Broadband Policy 2018.