Airtel Africa reports strong operational growth despite currency headwinds

Airtel Africa reported continued growth in its customer base and digital services during the year ended 31 March 2025. The total customer base increased by 8.7% to 166.1 million, with the company’s focus on digital inclusion contributing to a 4.3% rise in smartphone penetration to 44.8%. The number of data customers grew by 14.1% to 73.4 million, while average data usage per customer rose by 30.4% to 7.0 GB. This contributed to a 15.4% increase in data ARPU (average revenue per user) on a constant currency basis.

Mobile money services also saw strong momentum, supported by ongoing investment in the Airtel Money agent network, improved digital offerings, and an expanded range of use cases. Mobile money subscribers rose by 17.3% to 44.6 million, while ARPU grew by 11.4% in constant currency. In Q4 FY25, the total transaction value increased by 34% in constant currency, bringing the annualised transaction value to USD145 billion.

The company’s strategic focus on enhancing customer experience was reinforced by the deployment of 2,583 new mobile sites and approximately 3,300 kilometres of fibre, improving network capacity and coverage across its markets.

Financial Performance

Group revenue for the year was USD4,955 million, representing a 21.1% increase in constant currency but a marginal decline of 0.5% in reported currency due to foreign exchange headwinds. Revenue growth accelerated in Q4 FY25, rising by 23.2% in constant currency and 17.8% in reported currency, driven by tariff adjustments in Nigeria and improved macroeconomic conditions.

Mobile services revenue increased by 19.6% in constant currency, led by voice revenue growth of 10.6% and a 30.5% rise in data revenue. Mobile money revenue grew by 29.9% in constant currency.

Underlying EBITDA declined by 5.1% in reported currency to USD2,304 million, with EBITDA margin narrowing to 46.5% from 48.8% in the prior year. The decline reflected higher fuel costs and a reduced contribution from Nigeria. However, margins improved over the course of the year, rising from 45.3% in Q1 FY25 to 47.3% in Q4 FY25, supported by cost efficiency initiatives and a more stable operating environment.

Profit after tax reached USD 328 million, a significant improvement from a USD 89 million loss in the prior year, which had been impacted by foreign exchange and derivative losses in Nigeria. Basic earnings per share rose to 6.0 cents, compared to a loss of 4.4 cents in the previous year. EPS before exceptional items fell to 8.2 cents from 10.1 cents, largely due to increased finance costs from tower contract renewals and the delayed impact of prior period currency devaluations.

Capital Allocation and Financial Position

Capital expenditure for the year totalled USD 670 million, below guidance due to the deferral of planned data centre investments. The capex outlook for the coming year is between USD725 million and USD750 million to support continued growth.

Airtel Africa continued to reduce its exposure to foreign currency debt, repaying USD702 million during the year. As of 31 March 2025, 93% of operating company debt (excluding lease liabilities) was denominated in local currency, up from 83% a year earlier.

Net leverage increased from 1.4x to 2.3x, mainly due to a USD 1.3 billion rise in lease liabilities following tower contract renewals. Lease-adjusted leverage increased from 0.7x to 1.0x, reflecting lower lease-adjusted EBITDA due to currency translation impacts and a higher level of lease-adjusted net debt.

The Board has proposed a final dividend of 3.9 cents per share, bringing the total dividend for the year to 6.5 cents per share, an increase of 9.2% year-on-year, in line with the company’s dividend policy. Additionally, USD120 million was returned to shareholders through share buyback programmes.

Sunil Taldar, Chief Executive Officer, commented, “We have delivered another strong year of operational performance, demonstrating the continued effectiveness of our strategy across our markets. Our investments in network infrastructure and digital platforms have enhanced the customer experience and driven increased digital inclusion, with a 20% rise in smartphone users to 74.4 million, supporting a 47.5% increase in data traffic.

Airtel Money continues to support financial inclusion, with a 17.3% increase in customers and transaction values reaching USD136 billion, a 32% increase in constant currency."

Highlighting the financial performancehe added, " financial performance was strong, with revenue growth peaking at 23.2% in Q4 FY25. Tariff adjustments in Nigeria and disciplined execution supported this momentum. Our cost efficiency programme also contributed to improved EBITDA margins throughout the year.

We remain focused on further margin improvements, subject to macroeconomic conditions, and continue to invest in expanding network capacity to sustain growth. We are progressing well with preparations for the Airtel Money IPO and expect a listing in the first half of calendar 2026, subject to market conditions."

He concluded, "While we are encouraged by recent operating stability, we remain vigilant about global developments that could affect our business. We are committed to delivering on our strategy and supporting economic progress in our markets. I would like to thank our customers, partners, governments, regulators, and our employees for their continued support.”

GAAP Measures – Year Ended 31 March 2025