Airtel Africa plc: Results for nine-month period ended 31 December 2024

Zawya

30-01-2025

Operating highlights
The total customer base grew [1] by 7.9% to 163.1 million. Data customer penetration continues to rise, with a 13.8% increase in data customers to 71.4 million. Data usage per customer increased by 32.3% to 6.9 GBs, with smartphone penetration increasing by 5.2% to reach 44.2%.
The continued investment to increase financial inclusion across our markets contributed to an 18.3% increase in mobile money subscribers to 44.3 million. Transaction value in Q3'25 increased by 33.3% in constant currency 1 with annualised transaction value of $146bn.
Data ARPU growth of 15.0% and mobile money ARPU growth of 11.8% in constant currency continued to support overall ARPUs which rose 12.0% 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 20.8% with the rollout of 2,850 sites and approximately 2,600 kms of fibre.
Financial performance
Revenues of $3,638m grew by 20.4% in constant currency but declined by 5.8% 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 21.3% in constant currency and reported currency revenue growth of 2.5%.
Across the Group, mobile services revenue grew by 18.8% in constant currency, driven by voice revenue growth of 9.8% and data revenue growth of 29.5%. Mobile money revenue grew by 29.6% in constant currency.
EBITDA for the nine-month period declined by 11.9% in reported currency to $1,681m with EBITDA margins of 46.2% 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 45.3% in Q1'25 to 46.9% in Q3'25.
In Q3'25, profit after tax benefitted from an exceptional gain of $94m (net of tax) following the naira and Tanzanian shilling appreciation. However, over the nine-month period ending 31 December 2024, profit after tax of $248m was impacted by $57m 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.
Capital allocation
Capex of $456m was 7.8% lower compared to prior period. Capex guidance for the full year remains between $725m and $750m as we continue to invest for future growth.
We have been consistently reducing our foreign currency debt exposure, having paid down $739m of foreign currency debt over the last year. Furthermore, 92% of our OpCo debt (excl. lease liabilities) is now in local currency, up from 79% a year ago.
Leverage has increased from 1.3x to 2.4x primarily reflecting the $1.2bn 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 (see page 6).
Following the completion of the first $100m buyback, in December 2024 we announced the commencement of a second share buyback programme that will return up to $100m 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.
Sunil Taldar, chief executive officer, on the trading update:
'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 21.3% 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 49% 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 8% 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 $100m to shareholders.
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.'
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Alternative performance measures (APM) 2
(Nine-month period ended)
Description
Dec-24
Dec-23
Reported
currency
Constant
currency
$m
$m
change
change
Revenue
3,638
3,861
(5.8%)
20.4%
EBITDA
1,681
1,908
(11.9%)
15.3%
EBITDA margin
46.2%
49.4%
(323) bps
(206) bps
EPS before exceptional items ($ cents)
6.2
7.1
(12.7%)
Operating free cash flow
1,225
1,414
(13.4%)
About Airtel Africa
Airtel Africa is a leading provider of telecommunications and mobile money services, with operations in 14 countries in sub-Saharan Africa. Airtel Africa provides an integrated offer to its subscribers, including mobile voice and data services as well as mobile money services both nationally and internationally.
The company's strategy is focused on providing a great customer experience across the entire footprint, enabling our corporate purpose of transforming lives across Africa.
Enquiries
Airtel Africa – Investor Relations
Alastair Jones
[e-mail]
Hudson Sandler
Nick Lyon
Emily Dillon
[e-mail]​​​​