Airtel Africa has maintained robust operating performance driven by strong fundamentals and focused execution. The company’s strategic initiatives have yielded notable results across key metrics, underscoring its resilience and growth trajectory in telecommunications.
Sunil Taldar, CEO of Airtel Africa, expressed confidence in the company’s performance amidst evolving market conditions. He emphasized the successful execution of a comprehensive cost-efficiency program aimed at optimizing network utilization and reducing operational expenses while safeguarding future growth prospects.
Taldar reiterated Airtel Africa’s commitment to enhancing customer experience and pursuing new growth opportunities in enterprise solutions, fibre, and data centres across its African footprint. The CEO also underscored the importance of maintaining a strong capital structure to support ambitious growth targets and mitigate currency risks.
Operating Highlights
Airtel Africa reported a significant growth in its customer base, with an 8.6% increase to 155.4 million customers. The adoption of data services continued to soar, evidenced by a 13.4% rise in data customers, reaching 64.4 million. Moreover, data usage per customer surged 25.1% to 6.2 GBs, reflecting increasing smartphone penetration, which grew by 4.7% to 41.7%.
The company’s mobile money segment also saw substantial growth, with a 14.9% increase in subscribers and a 28.7% rise in transaction value, amounting to an annualized $120 billion in reported currency.
Financial Performance
In the first quarter of fiscal year 2025, Airtel Africa’s constant currency revenue surged by 19.0%, driven by strong performances in Nigeria (33.4% growth) and East Africa (22.3% growth). However, reported currency revenues declined by 16.1% to $1,156 million, primarily due to currency devaluation impacts, particularly in Nigeria.
Despite challenges such as increased fuel prices and currency fluctuations, the company maintained a resilient EBITDA margin of 45.3%, although it was lower than the previous year’s 49.5%. Adjusted for currency effects, EBITDA increased by 11.3%.
Capital Allocation and Sustainability
Airtel Africa continued to invest strategically, with capital expenditures reaching $147 million, slightly up from the previous year. The company achieved a significant milestone by eliminating HoldCo debt entirely, positioning itself with a robust capital structure to support future growth initiatives. Notably, 86% of its market debt is now in local currency.
The company’s commitment to sustainability was underscored by the publication of its 2024 Sustainability Report, highlighting progress towards UN Sustainable Development Goals and integrating sustainability into its business strategy.
