O
Omoleye Omoruyi
Guest
Airtel Africa’s half-year 2025 report paints a picture of robust expansion against a backdrop of economic challenges. With a customer base expanding by 6.1% to 156.6 million and a rise in mobile money penetration, the company has leveraged Africa’s increasing digital adoption.
However, currency devaluation—especially Nigeria’s naira depreciation—significantly impacted reported earnings, sparking a focus on localised debt strategies and operational cost efficiency.
Airtel Africa has maintained strong growth momentum, with a 19.9% increase in revenue in constant currency despite a 9.7% decline in reported currency due to exchange rate challenges.
The company attributes this growth to an expanded customer base and increased data usage, with a 10.4% increase in data customers to 66 million. Data consumption per user rose by over 30%, emphasising the region’s growing reliance on mobile data.
Nigeria remains pivotal, driving 38.2% of constant currency revenue growth in Q2’25. Meanwhile, East Africa demonstrated 19.1% growth in constant currency, bolstered by data and mobile money adoption.
The report highlights that Francophone Africa while showing slower growth, remains a core market with stable revenue streams.
Nigeria
Carl Cruz, Airtel Nigeria CEO (Airtel Africa)
East Africa – data and mobile money lead to a double-digit growth
Francophone Africa
Airtel Africa tackled foreign currency debt aggressively, reducing it by $809 million, leaving 89% of its debt in local currencies. This is particularly relevant as currency devaluation, notably in Nigeria, posted a $231 million exceptional loss in foreign exchange and derivatives.
The company’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) dropped to 45.8% from 49.6% in H1 2023, heavily impacted by inflation and fuel costs, which surged around 90% in Nigeria.
Despite this, Q2 improvements suggest Airtel Africa’s cost efficiency program is taking root, with sequential EBITDA margin growth from Q1’s 45.3% to 46.4% in Q2.
Mobile money registered a remarkable 28.8% revenue growth in constant currency, driven by a 13.4% increase in subscribers.
Airtel Africa’s financial inclusion strategy, focused on underserved markets, has led to a transaction volume rise to $128 billion annually, with mobile money now contributing 19.6% of the company’s total revenue. The rapid onboarding of agents and expansion into rural areas have strengthened Airtel Money’s footprint.
Sunil Taldar, Airtel Africa CEO
Airtel Africa’s expansion includes 2,800 new sites and 4,200 4G-enabled sites, with 96.6% of its sites now 4G-capable. Also, 1,200 sites across five countries now support 5G, catering to Africa’s urban data needs.
Airtel’s strategic fibre investments add 3,500 kilometres to its network, aligning with data centre expansions to support business growth and Africa’s digital infrastructure.
The company’s lease extension with American Tower Corporation (ATC), covering over 7,100 sites, marks a commitment to renewable energy and reduced greenhouse gas emissions. This strategic move supports sustainability goals while potentially lowering long-term costs by reducing diesel dependency.
The regulatory environment poses notable challenges. In Nigeria, for instance, Airtel was mandated to disconnect SIMs unregistered with the national identity number (NIN), affecting customer growth. Despite these challenges, Airtel is working closely with governments to ensure compliance while mitigating revenue impact.
On a positive note, The “My Airtel App,” combining telecom and mobile wallet functions, recorded a 92% increase in active users, showcasing Airtel’s commitment to digitalisation. The app’s high transaction growth reflects customer adoption of self-service digital offerings, with data plans and mobile payments becoming seamless parts of the customer journey.
Airtel declared a 2.6 cents interim dividend and announced a $100 million share buyback program, signalling confidence in long-term growth despite current financial pressures. This aligns with Airtel’s progressive dividend policy, which supports consistent shareholder returns.
Meanwhile, Airtel Africa achieved a zero-debt position at the HoldCo level by repaying a $550 million bond, reflecting disciplined financial management. This milestone is significant as it mitigates future currency fluctuation risks, freeing up capital for further regional investments.
Looking forward, Airtel Africa’s focus remains on core growth drivers: expanding its 5G and mobile money networks, reinforcing local debt positions, and enhancing digital accessibility for African markets. The company’s efforts in cost optimisation, infrastructure expansion, and financial inclusion underscore a strategy aimed at resilience amid Africa’s economic volatility.
Segun Ogunsanya, former CEO of Airtel Africa
Airtel Africa’s half-year 2024 performance underscores the dynamic interplay between growth opportunities and economic challenges within Africa’s telecom landscape.
At the core, Airtel Africa is positioned as a central player in digital inclusion, connecting a rapidly expanding population to mobile and financial services. Despite facing intense currency devaluation, regulatory hurdles, and inflationary pressures, Airtel’s ongoing investments in 4G and 5G infrastructure, mobile money, and digital services reflect its confidence in Africa’s economic future.
Each region within Airtel’s footprint presents unique growth dynamics—Nigeria’s high data demand, East Africa’s leading role in mobile money, and Francophone Africa’s gradual digital expansion.
By localising its debt and enhancing its financial resilience through cost optimisation and operational efficiency, Airtel Africa has crafted a model for navigating financial volatility while maintaining service accessibility across 14 African markets.
This matters for Airtel’s shareholders and Africa’s broader digital economy, where telecom companies play a critical role in driving connectivity, financial inclusion, and economic empowerment.
Airtel Africa’s approach can be a blueprint for balancing rapid market expansion with prudent financial management, addressing the continent’s unique challenges, and capitalising on its vast, untapped potential. In an era of rising demand for connectivity and financial access, Airtel Africa is not just surviving the economic headwinds—it is positioning itself to thrive as a catalyst for Africa’s digital future.
The post Airtel Africa reports 19.9% revenue increase, 156.6 million customers in H1, 2024 first appeared on Technext.
However, currency devaluation—especially Nigeria’s naira depreciation—significantly impacted reported earnings, sparking a focus on localised debt strategies and operational cost efficiency.
Airtel Africa has maintained strong growth momentum, with a 19.9% increase in revenue in constant currency despite a 9.7% decline in reported currency due to exchange rate challenges.
The company attributes this growth to an expanded customer base and increased data usage, with a 10.4% increase in data customers to 66 million. Data consumption per user rose by over 30%, emphasising the region’s growing reliance on mobile data.
Regional breakdown: Nigeria and East Africa lead
Nigeria remains pivotal, driving 38.2% of constant currency revenue growth in Q2’25. Meanwhile, East Africa demonstrated 19.1% growth in constant currency, bolstered by data and mobile money adoption.
The report highlights that Francophone Africa while showing slower growth, remains a core market with stable revenue streams.
Nigeria
- Revenue impact: Nigeria experienced the most significant currency-related impact, with a reported 44.3% revenue decline in dollars, but constant currency growth of 35.6%. This divergence highlights the steep depreciation of the naira, which has affected both earnings and operational costs.
- Growth drivers: Despite this, data usage continued to rise, with a 44.4% increase in constant currency revenue, driven by both the expanding customer base and data consumption. Voice services also showed resilience with a 23.0% increase in constant currency, despite regulatory restrictions requiring compliance with SIM registration mandates.
- Challenges: A primary challenge has been a 90% surge in diesel prices, which, coupled with currency issues, impacted the EBITDA margin, down by 5.3%. However, Airtel’s cost management program is gradually offsetting this, with margins improving from Q1 to Q2.
Carl Cruz, Airtel Nigeria CEO (Airtel Africa)
East Africa – data and mobile money lead to a double-digit growth
- Revenue Growth: East Africa, comprising markets like Kenya, Tanzania, Uganda, and Zambia, recorded a revenue increase of 19.1% in constant currency, supported by data (26.1%) and mobile money (31.4%). Data revenue growth has been especially strong, driven by higher smartphone penetration and expanding 4G network coverage, which now spans 98.8% of Airtel’s sites in East Africa.
- Mobile Money success: Mobile money has been particularly impactful in East Africa, where smartphone and digital payment adoption are expanding rapidly. A robust distribution network—including 1,200 new Airtel Money branches—has helped drive revenue, positioning East Africa as Airtel Africa’s mobile money hub.
- Operational efficiency: Rising fuel costs have impacted margins, but a strategic focus on cost efficiency improved Q2 margins compared to Q1, signalling operational resilience.
Francophone Africa
- Revenue trends: In Francophone Africa, revenue rose by a modest 5.3% in constant currency, primarily through data services, which saw 18.1% growth due to both customer base and usage expansion. Voice revenue has been more volatile, impacted by regulatory changes in interconnect rates and price competition in key markets like Congo B and Niger.
- Network expansion and usage: Airtel Africa’s rollout of 4G infrastructure in Francophone Africa drove a 41.8% increase in data volume, with smartphone usage reaching an average of 6.2 GB per month. However, higher energy costs and frequency fees affected profitability, resulting in an EBITDA margin drop of 5.4%.
- Challenges and focus areas: Currency volatility in markets such as Chad and Congo has affected revenue translation. However, the company is doubling down on network investments to tap into underbanked and underserved segments, which could drive future growth.
Financial strategies in response to devaluation and debt pressures
Airtel Africa tackled foreign currency debt aggressively, reducing it by $809 million, leaving 89% of its debt in local currencies. This is particularly relevant as currency devaluation, notably in Nigeria, posted a $231 million exceptional loss in foreign exchange and derivatives.
The company’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) dropped to 45.8% from 49.6% in H1 2023, heavily impacted by inflation and fuel costs, which surged around 90% in Nigeria.
Despite this, Q2 improvements suggest Airtel Africa’s cost efficiency program is taking root, with sequential EBITDA margin growth from Q1’s 45.3% to 46.4% in Q2.
Mobile Money
Mobile money registered a remarkable 28.8% revenue growth in constant currency, driven by a 13.4% increase in subscribers.
Airtel Africa’s financial inclusion strategy, focused on underserved markets, has led to a transaction volume rise to $128 billion annually, with mobile money now contributing 19.6% of the company’s total revenue. The rapid onboarding of agents and expansion into rural areas have strengthened Airtel Money’s footprint.
Sunil Taldar, Airtel Africa CEO
Technology Investments: 5G, Fibre, and Expanding Infrastructure
Airtel Africa’s expansion includes 2,800 new sites and 4,200 4G-enabled sites, with 96.6% of its sites now 4G-capable. Also, 1,200 sites across five countries now support 5G, catering to Africa’s urban data needs.
Airtel’s strategic fibre investments add 3,500 kilometres to its network, aligning with data centre expansions to support business growth and Africa’s digital infrastructure.
The company’s lease extension with American Tower Corporation (ATC), covering over 7,100 sites, marks a commitment to renewable energy and reduced greenhouse gas emissions. This strategic move supports sustainability goals while potentially lowering long-term costs by reducing diesel dependency.
Challenges and strategic opportunities in Africa’s telecom landscape
The regulatory environment poses notable challenges. In Nigeria, for instance, Airtel was mandated to disconnect SIMs unregistered with the national identity number (NIN), affecting customer growth. Despite these challenges, Airtel is working closely with governments to ensure compliance while mitigating revenue impact.
On a positive note, The “My Airtel App,” combining telecom and mobile wallet functions, recorded a 92% increase in active users, showcasing Airtel’s commitment to digitalisation. The app’s high transaction growth reflects customer adoption of self-service digital offerings, with data plans and mobile payments becoming seamless parts of the customer journey.
Capital allocation and shareholder returns
Airtel declared a 2.6 cents interim dividend and announced a $100 million share buyback program, signalling confidence in long-term growth despite current financial pressures. This aligns with Airtel’s progressive dividend policy, which supports consistent shareholder returns.
Meanwhile, Airtel Africa achieved a zero-debt position at the HoldCo level by repaying a $550 million bond, reflecting disciplined financial management. This milestone is significant as it mitigates future currency fluctuation risks, freeing up capital for further regional investments.
Key takeaways and strategic priorities
Looking forward, Airtel Africa’s focus remains on core growth drivers: expanding its 5G and mobile money networks, reinforcing local debt positions, and enhancing digital accessibility for African markets. The company’s efforts in cost optimisation, infrastructure expansion, and financial inclusion underscore a strategy aimed at resilience amid Africa’s economic volatility.
Segun Ogunsanya, former CEO of Airtel Africa
Why this matters
Airtel Africa’s half-year 2024 performance underscores the dynamic interplay between growth opportunities and economic challenges within Africa’s telecom landscape.
At the core, Airtel Africa is positioned as a central player in digital inclusion, connecting a rapidly expanding population to mobile and financial services. Despite facing intense currency devaluation, regulatory hurdles, and inflationary pressures, Airtel’s ongoing investments in 4G and 5G infrastructure, mobile money, and digital services reflect its confidence in Africa’s economic future.
Each region within Airtel’s footprint presents unique growth dynamics—Nigeria’s high data demand, East Africa’s leading role in mobile money, and Francophone Africa’s gradual digital expansion.
By localising its debt and enhancing its financial resilience through cost optimisation and operational efficiency, Airtel Africa has crafted a model for navigating financial volatility while maintaining service accessibility across 14 African markets.
This matters for Airtel’s shareholders and Africa’s broader digital economy, where telecom companies play a critical role in driving connectivity, financial inclusion, and economic empowerment.
Airtel Africa’s approach can be a blueprint for balancing rapid market expansion with prudent financial management, addressing the continent’s unique challenges, and capitalising on its vast, untapped potential. In an era of rising demand for connectivity and financial access, Airtel Africa is not just surviving the economic headwinds—it is positioning itself to thrive as a catalyst for Africa’s digital future.
The post Airtel Africa reports 19.9% revenue increase, 156.6 million customers in H1, 2024 first appeared on Technext.