Airtel Africa’s strong fundamentals and focused execution have continued to support its operating performance despite a challenging macro-economic environment.
The company reported significant growth in its customer base, increasing by 8.6% to 155.4 million. Data customer penetration rose by 13.4%, reaching 64.4 million users, with data usage per customer up by 25.1% to 6.2 GBs.
Mobile money subscribers grew by 14.9%, with transaction value increasing by 28.7% in constant currency, reaching an annualized value of $120 billion.
Revenue in constant currency grew by 19.0% in Q1’25, driven by 33.4% growth in Nigeria and 22.3% growth in East Africa. However, reported currency revenues declined by 16.1% to $1,156 million due to currency devaluation, particularly in Nigeria.
The company faced a decline in EBITDA margins to 45.3% from 49.5% in Q1’24 due to rising fuel prices and lower contributions from Nigeria.
Profit after tax was $31 million, impacted by $80 million in exceptional derivative and foreign exchange losses due to the depreciation of the Nigerian naira.
Capital expenditure increased by 4.9% to $147 million, with full-year capex guidance remaining between $725 million and $750 million.
Airtel Africa achieved zero HoldCo debt following the repayment of a $550 million bond in May 2024, with 86% of market debt now in local currency.
The company’s leverage increased to 1.6x on June 30, 2024, compared to 1.3x in the prior period, primarily due to currency devaluation impacts on EBITDA.
The $100 million share buyback program is ongoing, with 21 million shares purchased for $29 million as of June 2024.
Airtel Africa’s sustainability report for 2024 highlighted progress against its sustainability goals and contributions to the UN SDGs.
CEO Sunil Taldar emphasized the resilient demand for Airtel Africa’s services and the company’s superior execution. Taldar highlighted opportunities for growth in enterprise, fiber, and data center businesses across Africa.
He underscored the importance of improving customer experience and driving efficiencies. The company has initiated a cost optimization program, achieving savings in network and distribution costs.
Taldar also emphasized the importance of a strong capital structure, noting the full repayment of HoldCo debt and ongoing efforts to reduce foreign currency exposure.
Despite the challenges, Airtel Africa remains focused on margin improvement and leveraging growth opportunities across its markets.
