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Home » Investments » Airtel Africa Delivers Strong Q1 Growth, Setting Positive Tone for Future Dividend Payouts

Airtel Africa Delivers Strong Q1 Growth, Setting Positive Tone for Future Dividend Payouts

Queen Amber by Queen Amber
10 months ago
in Investments
Reading Time: 2 mins read
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Airtel Africa

Airtel Africa

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Airtel Africa PLC has posted a robust performance for the quarter ended 30 June 2025, with Group revenue in reported currency rising by 22.4 percent to 1.415 billion US dollars. In constant currency terms, revenue surged by 24.9 percent, reflecting strong operational momentum and continued demand across its markets.

East Africa contributed significantly to the performance, with revenue increasing by 17.6 percent in reported currency to 498 million US dollars. This growth was underpinned by a 15.1 percent rise in voice revenue, supported by a 9.8 percent increase in the customer base and a 4.0 percent rise in Average Revenue Per User (ARPU). Data revenue in the region grew by 21.4 percent, driven by expanding network coverage and increased distribution scale.

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Chief Executive Officer Sunil Taldar said, “We are very pleased with the strong growth in our operating and financial performance in the first quarter. The strength of this performance and the scale of the growth we achieved reflect the sustained demand for our services and the strength of our business model to meet these demands.”

The total customer base grew by 9.0 percent year-on-year to 169.4 million, with data users rising by 17.4 percent to 75.6 million. Smartphone penetration improved to 45.9 percent, as Airtel Africa focused on bridging the digital divide. Data usage across the network increased by 47.4 percent, while data ARPU grew by 18.5 percent in constant currency.

Mobile money remains a key growth driver, with customers increasing by 16.1 percent to 45.8 million and annualised transaction value rising by 35 percent to 162 billion US dollars. ARPU in the segment rose by 11.3 percent.

The Group’s EBITDA grew by 29.8 percent to 679 million US dollars, with EBITDA margins improving to 48.0 percent from 45.3 percent a year ago. Profit after tax rose significantly to 156 million US dollars, up from 31 million US dollars in the previous year, benefitting from a foreign exchange gain related to the appreciation of the Central African franc.

Airtel Africa continues to invest in its infrastructure, having rolled out over 2,300 new sites and extended its fibre network by 2,700 kilometres in the quarter. The company’s 4G population coverage now stands at 74.7 percent, up from 71.3 percent.

Capital expenditure for the quarter stood at 121 million US dollars, with full-year guidance maintained between 725 million and 750 million US dollars. The Group has continued its debt localisation programme, with 95 percent of operating company debt now held in local currencies.

As part of its capital allocation strategy, Airtel Africa has returned 16.9 million US dollars to shareholders through its ongoing 55 million US dollar share buyback programme.

Taldar concluded, “With a strong balance sheet and sustained network investment, I remain confident about our ability to capture the available growth potential across our markets and remain committed to efficiently and effectively delivering services that help to improve the lives, communities, and economies we serve.”

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