Airtel Africa’s Revenue Rises 20.4% to $3.64bn in 9 months

Airtel Africa Plc has reported a 20.4 per cent increase in revenue, reaching $3.64 billion for the nine-month period ended 31 December 2024. The telecommunications giant attributed its growth to rising customer numbers, increased data usage, and expanding mobile money transactions across its markets.

According to the company’s latest financial report, Airtel Africa’s total customer base grew by 7.9 per cent to 163.1 million, reflecting continued demand for its services. Data customer penetration surged by 13.8 per cent, reaching 71.4 million subscribers, while smartphone penetration improved by 5.2 per cent to 44.2 per cent. Additionally, data consumption per customer saw a sharp rise of 32.3 per cent, averaging 6.9 gigabytes per user.

Airtel Africa’s mobile money segment also recorded significant growth, with subscribers increasing by 18.3 per cent to 44.3 million. The transaction value in the third quarter grew by 33.3 per cent in constant currency, bringing the annualised transaction value to $146 billion. Average Revenue Per User (ARPU) climbed 15 per cent, while mobile money ARPU rose by 11.8 per cent in constant currency, highlighting strong consumer engagement.

Despite the revenue increase, the company’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) declined by 11.9 per cent to $1.68 billion in reported currency. Airtel Africa attributed this drop to rising fuel costs and a lower contribution from its Nigerian operations. EBITDA margins stood at 46.2 per cent during the period.

The company also reported a 7.8 per cent reduction in capital expenditure (capex), which fell to $456 million. However, Airtel Africa maintained its full-year capex guidance within the range of $725 million to $750 million. Additionally, the company’s leverage ratio increased from 1.3x to 2.4x, primarily due to a $1.2 billion rise in lease liabilities from extended tower lease agreements.

Airtel Africa noted that its operating company (OpCo) debt is now largely denominated in local currency, with only 8 per cent held in foreign currency. This shift is expected to mitigate the impact of currency fluctuations across its markets.

Commenting on the results, Airtel Africa’s Chief Executive Officer, Sunil Taldar, highlighted the company’s strategic focus on operational efficiency and growth. “We have delivered an improvement in both operating and financial performance in the last quarter, driven by our refined strategy. Our focus on speed and quality execution is enabling us to unlock substantial opportunities across our markets,” he said.

Taldar noted that data traffic had increased by 49 per cent over the past year, underscoring the impact of Airtel Africa’s investments in network expansion and digital services. He also reaffirmed the company’s commitment to improving margins and strengthening its capital structure.

In a show of confidence in its long-term growth prospects, Airtel Africa’s board has approved a second share buyback programme, valued at up to $100 million, aimed at delivering value to shareholders.

Taldar expressed optimism about the operating environment, citing recent signs of currency stabilisation in some markets and the Nigerian Communications Commission’s decision on tariff adjustments as positive developments. “While challenges remain, these developments provide a firm foundation for growth and improved market conditions,” he stated.

Airtel Africa continues to expand its footprint across the continent, leveraging its growing subscriber base, mobile money ecosystem, and data-driven services to sustain its revenue momentum.