… Nigerian operations drive growth with 29.8% constant currency revenue increase following tariff adjustments
Rashidat O. Okunlade Writes, Lagos
Airtel Africa PLC, leading provider of telecommunications and mobile money services, with operations in 14 countries across sub-Saharan Africa today reported robust financial results for the quarter ended 30 June 2026, with total revenue rising 31.0% in reported currency to $1.853 billion, reflecting constant currency growth of 21.1% and favourable macroeconomic tailwinds supporting currency appreciation across key markets.
The telecommunications and mobile money provider’s total customer base grew 11.6% to 189 million, with data customers increasing 15.5% to 87.3 million. Smartphone penetration reached 51.0%, up 5.2 percentage points year-on-year, driving a 56.3% increase in data traffic across the network as customers embrace digital solutions.
Mobile Money Platform Shows Strong Momentum
Annualised total processed value on the Airtel Money platform surged 51.5% to over $245 billion in reported currency, supported by customer base growth of 23.3% to 56.5 million. Mobile money revenue grew 25.8% on a constant currency basis, with East Africa revenue rising 21.1% and Francophone Africa revenue increasing 39.0%.
In a significant strategic development, the Group confirmed London as its preferred listing venue for Airtel Money, subject to regulatory approvals. The proposed IPO is expected to provide access to a broad international investor base and support the long-term value creation potential of one of Africa’s leading Fintech platforms.
Financial Performance
EBITDA increased 36.6% in reported currency to $928 million, with EBITDA margins improving 206 basis points to 50.1%. This performance reflects the success of the company’s ongoing cost optimisation programme, despite recent energy cost inflation arising from geopolitical developments.
Profit after tax rose to $198 million, up from $156 million in the prior period, driven by higher operating profit. Basic earnings per share increased to 4.4 cents from 3.4 cents, while EPS before exceptional items rose to 5.4 cents.
Regional Performance:
Nigeria: Revenue grew 29.8% in constant currency, with data revenue surging 38.0% as smartphone penetration increased to 56.1%. The reported currency revenue growth of 50.4% reflects significant appreciation of the Nigerian naira.
East Africa: Revenue increased 17.8% in constant currency, with data revenue growing 22.5%. Smartphone penetration reached 48.1%, up 5.2 percentage points.
Francophone Africa: Revenue grew 18.0% in constant currency, with data revenue up 21.4% and customer base growth of 15.8%.
Accelerated Investment Programme
Capital expenditure rose to $389 million from $121 million in the prior period, supporting the addition of more than 920 sites during the quarter. The company expanded its fibre network to 82,100 kilometres and deployed 5G across seven markets with 3,609 sites now operational.
Leverage improved from 2.2x to 1.7x, with lease-adjusted leverage improving to 0.5x from 0.9x, primarily driven by EBITDA improvement.
During the period, the Board approved a share buyback programme to repurchase up to 1% of issued share capital. As of 30 June 2026, the company had purchased approximately 10.2 million shares for total consideration of $46.6 million.
Directorate Changes
Following the conclusion of the Annual General Meeting on 9 July 2026, Sunil Bharti Mittal retired as Chair of the Board, with Gopal Vittal appointed as non-executive Chair. Shravin Bharti Mittal assumed the role of Deputy Chair, and Annika Poutiainen retired as a non-executive director. On 22 July 2026, the Group announced the appointment of V.K. Viswanathan as an independent non-executive director.
Chief Executive’s Commentary
Sunil Taldar, Chief Executive Officer, said: “We have started this year with another pleasing performance. Our continued focus on customer experience translated into accelerating customer base growth across all business segments. Smartphone penetration reached 51.0%, reflecting continued progress in digital adoption across our markets, driving a 56.3% increase in data traffic.”
“Airtel Money continues to expand financial inclusion across our markets and unlock new growth vectors. Annualised TPV in excess of $245 billion increased 51.5%, reflecting the strength of engagement across the ecosystem. As we enter the next phase of our growth journey, we are pleased to confirm London as our preferred listing venue for Airtel Money in 2026.”
“Our accelerated investment programme remains on track, with investment brought forward into Q1 as we proactively invest ahead of demand to sustain our strong operating momentum and capture the growth opportunities presented by Africa’s ongoing digital transformation.”
Chief Financial Officer’s Review:
The Group’s revenue in reported currency increased 31.0% to $1.853 billion. Mobile services revenue at $1.528 billion increased 28.2% in reported currency, led by voice revenue growth of 11.2% and data revenue growth of 27.2% in constant currency. Mobile money revenues grew 25.8% in constant currency.
Total finance costs for the quarter amounted to $269 million, compared to $173 million in the prior period. The current period was impacted by a $37 million cost related to an in-principle settlement reached in respect of a commercial dispute in one of the Group’s subsidiaries, recognised as an exceptional item.
The effective tax rate was 40.9% compared to 40.1% in the previous year, higher than the weighted average statutory corporate tax rate of approximately 32% due to profit mix between operating companies and withholding taxes on dividends paid by subsidiaries.
Outlook
While higher energy costs arising from recent geopolitical developments are expected to increase inflationary pressures and weigh on EBITDA margins in the near term, the Group expects to continue offsetting some of this impact through its ongoing cost efficiency programme.
Management will host an analyst and investor conference call at 13:00 UK time today, including a question-and-answer session.
For further information, please contact: ROTA Media Concepts
Rashidat Olushola Okunlade
Publisher/Editor in-Chief BusinessEcho Magazine Print monthly and ROTAMediaNews digital newspaper publication
rotamedianews@gmail.com businessechomag@gmail.com
08082881578-08060575197
