Introduction
Airtel Africa (LON:AAF) has released its financial results for the nine-month period ending 31 December 2024, demonstrating strong operational momentum despite ongoing currency devaluation challenges. The company continues to see solid growth in its customer base, data usage, and mobile money services, underpinning revenue expansion in constant currency terms. Reflecting confidence in its financial health and future growth prospects, Airtel Africa has also launched a second $100 million share buyback programme following the successful completion of its first.
Key Operational Highlights
- Customer Growth: The total customer base expanded by 7.9% to 163.1 million, with data users increasing by 13.8% to 71.4 million.
- Data & Mobile Money Surge: Data usage per customer rose 32.3% to 6.9GB per month, while mobile money subscribers grew 18.3% to 44.3 million.
- Improved Network Infrastructure: Airtel Africa invested in expanding its network, rolling out 2,850 new sites and 2,600 km of fibre, increasing data capacity by 20.8%.
- Mobile Money Growth: Transaction values in Q3 2025 increased 33.3% in constant currency, with an annualised transaction value of $146 billion.
Financial Performance
Revenue & Profitability
- Total revenue grew 20.4% in constant currency but declined 5.8% in reported currency due to foreign exchange headwinds.
- Mobile services revenue increased 18.8% in constant currency, led by a 29.5% rise in data revenue and a 9.8% increase in voice revenue.
- Mobile money revenue rose 29.6% in constant currency, with growth across all major markets.
EBITDA & Margins
- EBITDA fell 11.9% in reported currency to $1.68 billion, mainly due to higher operating costs, including rising fuel prices and currency devaluation in Nigeria.
- Despite this, cost efficiency initiatives helped expand EBITDA margins from 45.3% in Q1 FY25 to 46.9% in Q3 FY25.
- Profit after tax stood at $248 million, supported by a $94 million exceptional gain in Q3 due to the appreciation of the Nigerian naira and Tanzanian shilling.
- Basic EPS increased to 4.4 cents, compared to a negative 1.6 cents in the prior period, largely due to lower derivative and forex losses.
Capital & Debt Management
- Capex for the period was $456 million, reflecting continued investment in network expansion and digital infrastructure.
- The company has paid down $739 million of foreign currency debt, significantly reducing its exposure to exchange rate volatility.
- 92% of OpCo debt is now in local currency, up from 79% a year ago, helping to stabilise financial performance.
Strategic Developments
Following the successful completion of its first $100 million buyback in October 2024, Airtel Africa has now launched a second share buyback programme of up to $100 million. This move reflects the Board’s confidence in the company’s financial stability and growth prospects while also enhancing shareholder value.
Regulatory & Market Updates
- The Nigerian Communications Commission (NCC) approved tariff adjustments, providing a more stable revenue outlook for telecom operators in the region.
- Airtel Kenya’s licence renewal ensures continued operations across key service segments.
- Tower lease agreements with American Tower Corporation (ATC) have been extended for 12 years, ensuring cost efficiency and operational stability.
Outlook & Future Growth
Airtel Africa remains focused on customer growth, digital expansion, and cost efficiencies to drive long-term profitability. Despite macroeconomic challenges, including currency fluctuations and inflationary pressures, the company continues to invest in network expansion and digital transformation to meet growing demand.
The recent signs of currency stabilisation in some markets, combined with regulatory tariff adjustments in Nigeria, provide a more supportive operating environment moving forward. With a disciplined approach to capital allocation and debt management, Airtel Africa is well-positioned to sustain its growth trajectory while returning value to shareholders.
Conference Call: Management will host an investor call on 30 January 2025 at 13:00 UK time to discuss the results in detail.
