Airtel Africa: $328m PAT Signals Strong Financial Momentum

Airtel Africa has recorded an impressive performance in its first quarter 2025 unaudited finance results as it posted a profit after tax of $328 million. 

This is an improvement from a $89 million loss in the prior period. The prior period was significantly impacted by derivative and foreign exchange losses, primarily in Nigeria. 

It also recorded revenues of $4,955 million grew by 21.1 per cent in constant currency but declined by 0.5 per cent in reported currency as currency devaluation impacted reported revenues. Strong execution and the tariff adjustments in Nigeria contributed to a further quarter of accelerating growth, with Q4’25 revenue growth of 23.2 per cent in constant currency, and 17.8 per cent in reported currency as currency headwinds eased. 

Across the group, mobile services revenue grew by 19.6 per cent in constant currency, driven by voice revenue growth of 10.6 per and data revenue growth of 30.5 per cent. Mobile money revenue grew by 29.9 per cent in constant currency. 

Total customer base grew by 8.7 per cent to 166.1 million, with focus on digital inclusion supporting a 4.3 per cent increase in smartphone penetration to 44.8 per cent. 

Data customers increased by 14.1 per cent to 73.4 million, with data usage per customer increasing by 30.4 per cent to 7.0 GB, supporting data ARPU growth of 15.4 per cent in constant currency 

The company’s continued investment in Airtel Money agent network, enhanced digital offerings and expanded use cases contributed to a 17.3 per cent increase in mobile money subscribers to 44.6 million and a 11.4 per cent growth in constant currency ARPU. In Q4’25, transaction value increased by 34 per cent in constant currency with annualised transaction value of $145 billion. 

The company’s strategic focus on great customer experience was underpinned by sustained network investment with the rollout of 2,583 new sites and approximately 3,300 kms of fibre, supporting increased data capacity across the region. 

For the year ended 31 March 2025, underlying Earnings before interest, taxes, depreciation and amortization 

(EBITDA) declined by 5.1 per cent in reported currency to $2.304 billion with underlying EBITDA margins of 46.5 per cent compared to 48.8 per cent in the prior year, impacted by increased fuel prices and the lower contribution of Nigeria to the Group. 

However, following a more stable operating environment and benefits from our cost efficiency programme, underlying EBITDA margins have expanded from 45.3 per cent in Q1’25 to 47.3 per cent in fourth quarter of 2025. 

Capex of $670 million was below our guidance, primarily reflecting a deferral of data centre investment. Capex guidance for the next year is between $725 million and $750 million as the company continue to invest for future growth. 

Significantly, the company has been consistently reducing its foreign currency debt exposure, having paid down $702 million of foreign currency debt over the year. 

Furthermore, 93 per cent of its OpCo debt (excl. lease liabilities) is now in local currency, up from 83 per cent a year ago. 

In appreciation of the commitment of shareholders, the board recommended a final dividend of 3.9 cents per share, making the total dividend for the full year 6.5 cents per share, a 9.2 per cent growth from the previous year, in line with the dividend policy. 

In addition, during the year the company returned $120 million to shareholders through share buyback programmes. 

Sunil Taldar, chief executive officer, on the trading update: “We have reported another strong operating performance as our strategy continues to deliver against the significant opportunity that exists across our markets. The focus on our refreshed strategy has seen continued investment in the network while also driving improvements in our digital platforms and offerings to further enhance the customer experience. 

SOURCE: AGENCIES