Airtel Africa’s total customer base grew by 7.9 per cent to 163.1 million while its data customer penetration continues to rise, with a 13.8 per cent increase in data customers to 71.4 million, according to its results for nine-month period ended 31 December 2024.
According to the result, data usage per customer increased by 32.3 per cent to 6.9 GBs, with smartphone penetration increasing by 5.2 per cent to reach 44.2 per cent.
The company’s continued investment to increase financial inclusion across its markets contributed to an 18.3per cent increase in mobile money subscribers to 44.3 million. Transaction value in Q3’25 increased by 33.3 per cent in constant currency with annualised transaction value of $146billion.
Data average revenue per user (ARPU) growth of 15 per cent and mobile money ARPU growth of 11.8per cent in constant currency continued to support overall ARPUs which rose 12 per cent year-on-year (YoY) in constant currency.
“Customer experience remains core to our strategy with sustained network investment during the period. In line with our strategic priorities, data capacity across our network has increased by 20.8per cent with the rollout of 2,850 sites and approximately 2,600 kms of fibre,” the telco said.
Capital expenditure (capex) of $456million was 7.8 per cent lower compared to prior period. Capex guidance for the full year remains between $725million and $750million as we continue to invest for future growth.
Airtel has been consistently reducing its foreign currency debt exposure, having paid down $739million of foreign currency debt over the last year. Furthermore, 92 per cent of its OpCo debt (excluding lease liabilities) is now in local currency, up from 79 per cent a year ago.
Commenting on the trading update, Chief Executive Officer, Sunil Taldar, said: “We have delivered an improvement in both the operating and financial performance in the last quarter driven by our refined strategy which is focussed on delivering great customer experience across all touch points. An increasingly important component of this is to provide a best-in-class network, digitise and simplify the customer journey. Our focus on speed and quality execution is enabling us to unlock the substantial opportunities for growth across our markets and business segments, where demand remains significant, resulting in a further acceleration of constant currency revenue growth to 21.3per cent in the most recent quarter.
“We remain committed to investing for the future by expanding our distribution and network to ensure that we capture this significant growth opportunity on offer. Despite the challenging environment for many of our customers, we continue to see strong demand for our services as we enable connectivity and facilitate access to the digital economy. The scale of data traffic growth across our markets – an increase of 49per cent over the last year – is testament to the investments we have made and the relentless focus on our strategy to create value for all our stakeholders.
“As we have communicated previously, our cost efficiency programme continues to deliver EBITDA margin improvements, with a further expansion of margins in Q3’25. We continue to focus on further margin improvement. Furthermore, our capital structure remains robust with just eight per cent of OpCo debt in foreign currency – a substantial improvement over the last year. This, together with continued confidence in the outlook for the business, has enabled the Board to announce a second share buyback programme, which will return up to $100million to shareholders.”
Taldar said the recent signs of currency stabilisation in some markets and the recent decision from the Nigerian Communications Commission (NCC) regarding tariff adjustments in Nigeria are encouraging and signal a more stable and supportive operating environment. While challenges remain, these developments provide a firm foundation for growth and improved market conditions.
The update showed that its revenues of $3,638million grew by 20.4per cent in constant currency but declined by 5.8per cent in reported currency as currency devaluation continued to impact reported revenue trends. Strong execution supported a further quarter of accelerating growth with Q3’25 revenue growth of 21.3per cent in constant currency and reported currency revenue growth of 2.5per cent.
Across the Group, mobile services revenue grew by 18.8per cent in constant currency, driven by voice revenue growth of 9.8per cent and data revenue growth of 29.5per cent. Mobile money revenue grew by 29.6per cent in constant currency.
EBITDA for the nine-month period declined by 11.9per cent in reported currency to $1,681million with EBITDA margins of 46.2per cent impacted by increased fuel prices and the lower contribution of Nigeria to the Group. However, following initial successes of our cost efficiency programme, EBITDA margins have expanded from 45.3per cent in Q1’25 to 46.9per cent in Q3’25.
In Q3’25, profit after tax benefitted from an exceptional gain of $94million (net of tax) following the naira and Tanzanian shilling appreciation. However, over the nine-month period ending 31 December 2024, profit after tax of $248million was impacted by $57million of exceptional derivative and foreign exchange losses (net of tax).
EPS before exceptional items declined from 7.1 cents in the prior period to 6.2 cents, primarily impacted by increased costs associated with the ATC contract renewal, which had no impact on cashflows. Basic EPS of 4.4 cents compares to negative (1.6 cents) in the prior period, predominantly reflecting lower derivative and foreign exchange losses in the current period.
On capital allocation, it said capex of $456million was 7.8per cent lower compared to prior period. Capex guidance for the full year remains between $725million and $750million as we continue to invest for future growth.
“We have been consistently reducing our foreign currency debt exposure, having paid down $739million of foreign currency debt over the last year. Furthermore, 92per cent of our OpCo debt (excl. lease liabilities) is now in local currency, up from 79per cent a year ago.
“Leverage has increased from 1.3x to 2.4x primarily reflecting the $1.2billion increase in lease liabilities arising from the extension of our tower lease agreements with ATC as previously announced. To reflect the Group’s financial market debt position and reduce volatility associated with lease accounting under IFRS16, the Group has introduced ‘Lease-adjusted leverage’ as an additional APM in the current period. Lease-adjusted leverage increased from 0.7x in the prior period to 1.1x as of 31 December 2024 reflecting the impact of higher debt and lower lease-adjusted EBITDA given the translation impact arising from currency devaluation.
“Following the completion of the first $100million buyback, in December 2024 we announced the commencement of a second share buyback programme that will return up to $100million to shareholders. This reflects the Board’s confidence in the continued growth potential, the strength of the balance sheet and consistent cash accretion at the holding company level,” the report noted.
