Latest news with #AirtelMoney
Zawya
24-07-2025
- Business
- Zawya
Airtel Africa plc: Results for quarter ended 30 June 2025
Operating highlights Our total customer base grew [1] by 9.0% to 169.4 million, with data customers increasing 17.4% to 75.6 million as the focus on bridging the digital divide across our markets continues. This, alongside a 4.3% increase in smartphone penetration to 45.9%, contributed to accelerating demand for data services with data ARPU growth accelerating to 18.5% in constant currency1 as data usage across our network increased by 47.4%. Airtel Money continues to play a pivotal role in fostering financial inclusion with a 16.1% increase in customers to 45.8 million. As use cases continue to expand, customers are increasingly engaging with a wide range of offerings supporting a 35% increase in annualised transaction value to $162bn, and ARPU growth of 11.3% in constant currency. Our strategic focus on great customer experience is underpinned by sustained network investment with the rollout of over 2,300 new sites to reach 37,579 sites and an expansion of our fibre network by 2,700 kms to over 79,600 kms. This investment continues to drive increased data capacity across the region with 4G population coverage reaching 74.7% – an increase of 3.4% from a year ago. Financial performance Revenues of $1,415m saw strong growth of 24.9% in constant currency and 22.4% in reported currency as currency headwinds continue to ease over the last three quarters. The acceleration in constant currency revenue growth from the previous quarter reflects not only the impact of the tariff adjustments in Nigeria, but also a strong performance in Francophone Africa reflecting the continued execution of our strategy focussed on the customer experience. Across the Group, mobile services revenue grew by 23.8% in constant currency, driven by voice revenue growth of 13.9% and data revenue growth of 38.1%. Mobile money revenues continued to see a strong growth trajectory, with 30.3% growth in constant currency. EBITDA grew by 29.8% in reported currency to $679m with EBITDA margins expanding further to 48.0% from 45.3% in the prior period driven by continued operating momentum, more stable fuel prices and sustained benefits from our cost efficiency programme. Profit after tax of $156m improved from $31m in the prior period. The prior period was significantly impacted by derivative and foreign exchange losses, primarily in Nigeria, while the current period benefitted from a $22m gain largely arising from the Central African franc (CFA) appreciation during the quarter. Basic EPS of 3.4 cents compares to 0.2 cents in the prior period, predominantly reflecting higher operating profit in the current period and derivative and foreign exchange losses in the prior period. EPS before exceptional items increased from 2.3 cents in the prior period to 3.4 cents, as higher operating profits more than offset the impact of higher finance costs arising from the tower contract renewals undertaken during the previous financial year. Capital allocation Capex of $121m was lower compared to the prior period, driven largely by timing differences. Capex guidance for the full year remains between $725m and $750m. We continued with our debt localisation programme aimed to reduce our foreign currency debt exposure with almost 95% of our OpCo debt (excl. lease liabilities) now in local currency, up from 86% a year ago. Leverage has increased from 1.6x to 2.2x (an improvement from 2.3x in Q4'25), primarily reflecting the $1.3bn increase in lease liabilities arising from the tower contract renewals, as previously disclosed. Lease-adjusted leverage remains flat at 0.9x. Since the commencement of the second tranche of the share buyback for $55m, the company has returned $16.9m to shareholders following the purchase of 7.1 million ordinary shares as of 30 June 2025. Sunil Taldar, chief executive officer, on the trading update: 'We are very pleased with the strong growth in our operating and financial performance in the first quarter. The strength of this performance, and the scale of the growth we achieved, reflects the sustained demand for our services and the strength of our business model to meet these demands. Operationally, the acceleration in customer base growth to 9%, and 17.4% growth in our data customers to 75.6m reflects the strong on-ground execution with a relentless focus on digitisation and the simplification of the customer experience. Our strategy continues to prioritise the customer experience, as demonstrated by the launch of Airtel Spam Alert—an AI-powered solution aimed at enhancing trust and delivering a safer network environment. This underscores our commitment to leveraging technology to lower barriers to smartphone adoption. With smartphone penetration at only 45.9%, we see significant headroom to drive further adoption and play a key role in bridging the digital divide. Mobile money remains a cornerstone of our current and future growth proposition. With our customer base approaching 46 million and expanding by over 16%, we see significant potential to further advance financial inclusion through the continued growth of our financial services offering. The continued expansion of our mobile money portfolio and the advancement of enterprise and digital payments contributed to a 35% growth in annualised transaction value to $162bn. We will continue to focus on technology and the range of product offerings to deliver a differentiated experience for our customers. The provision of these essential services and the strategic focus on providing a great customer experience underpinned the acceleration in constant currency revenue growth to 24.9%, translating into reported currency revenue growth of over 22% as currencies stabilise. This strong revenue performance and continued cost efficiencies contributed to further EBITDA margin expansion which resulted in strong EBITDA growth of approximately 30%, and we remain focussed on further margin improvements subject to macroeconomic stability. With a strong balance sheet and sustained network investment, I remain confident about our ability to capture the available growth potential across our markets and remain committed to efficiently and effectively delivering services that help to improve the lives, communities and economies we serve.' Alternative performance measures (APM) 2 (Quarter ended) Description Jun-25 Jun-24 Reported currency Constant currency $m $m change change Revenue 1,415 1,156 22.4% 24.9% EBITDA 679 523 29.8% 32.7% EBITDA margin 48.0% 45.3% 276 bps 282 bps EPS before exceptional items ($ cents) 3.4 2.3 48.6% Operating free cash flow 558 376 48.4% 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 Hudson Sandler Nick Lyon Emily Dillon airtelafrica@
Fintech News ME
23-05-2025
- Business
- Fintech News ME
Mobile Wallets Thrive in MEA, with Around 50 Competing Brands
In the Middle East and Africa (MEA), mobile wallets have transformed into a large and diverse market, home to approximately 50 unique brands and providers. A recent e-book by Thunes, a Singapore-based cross-border payment infrastructure provider, looks at this burgeoning landscape, revealing a complex ecosystem shaped by domestic fintech leaders and telecommunications firms. Local champions lead the way In many MEA markets, domestic mobile wallets have emerged as clear market leaders, with Egypt's Fawry, Kenya's M-Pesa, Nigeria's OPay, and Turkey's Papara exemplifying this trend. Fawry controls 40% of Egypt's mobile wallet market, while M-Pesa has an extraordinary 95% share in Kenya. In Nigeria, OPay leads with 51%, and in Turkey, Papara holds a significant 32% share. The dominance of these players can be attributed to a number of factors. For one, these companies have a deep understanding of local payments behaviors and needs. They tailor their offerings with local contexts in mind, offering interfaces in local languages, integrating with national identification systems, and supporting low-tech communication channels. For example, M-Pesa from Kenya pioneered mobile money through SMS. The solution allows users to deposit money into an account stored on their cell phones, send balances using PIN-secured SMS text messages to other users, including sellers of goods and services, and redeem their deposits from a network of agents. Trust is another critical factor. In areas where financial literacy is still developing, users prefer familiar, locally-rooted brands. In Nigeria, for example, the rise of OPay has been fueled by the company's strong on-ground presence, agent networks, and heavy investment in branding. These have reinforced credibility and user confidence. Telcos and mobile money drives financial access Across many African nations, telecom operators were the first to offer mobile wallets, long before banks or fintechs entered the space. M-Pesa by Safaricom is a global benchmark for mobile money success. The service was first launched in Kenya in 2007 before expanding to markets including Tanzania, Mozambique, the Democratic Republic of the Congo (DRC), Lesotho, Ghana, Egypt, Afghanistan, South Africa and Ethiopia. Other major telco-led wallets include MTN MoMo and Airtel Money. MNT MoMo started in Uganda in 2007, initially offering peer-to-peer (P2P) payments. Since then, MNT MoMo has expanded into 16 countries, evolving into a robust e-wallet platform. Airtel Money, offered by India's Bharti Airtel, allows users to manage funds from their phones, including storing value, making purchases, and transferring money seamlessly. Today, Airtel Money operates across more than a dozen markets, including Gabon, Tanzania, Madagascar and Malawi. In Ghana, Kenya, and Egypt, telco-led wallets remain dominant. In Kenya, M-Pesa dominates with a staggering 95% share. In Ghana, the mobile wallet market is led by MNT MoMo with a 55% share, followed by Vodafone Cash at 20% and AirtelTigo Money at 15%. Finally, in Egypt, Vodafone Cash and Orange Money rank second and third respectively, with shares of 30% and 15%, respectively. Strong use of bank wallets in urbanized, higher-income markets In more urbanized and financially developed markets, bank-owned mobile wallets hold a prominent position. In South Africa, for example, bank wallets command a market share of 41%, making them the top mobile payment method. In Turkey and Saudi Arabia, these apps rank second in market share, with 23% and 18%, respectively. The United Arab Emirates (UAE) also see significant usage, with bank wallets holding a 15% share and ranking third overall. Widespread adoption of bank wallets in these markets reflects the relatively high level of trust in traditional financial institutions. These markets also tend to have higher bank account penetration rates, making bank wallets a natural extension of existing customer relationships. In South Africa, the UAE and Saudi Arabia, over 80% of the adult population had a bank account in 2021, according to the World Bank. Apple Pay leads in the Gulf In the more digitally advanced and affluent parts of MEA, global tech wallets have established a strong foothold. Apple Pay, in particular, is the leading mobile wallet in both Saudi Arabia and the UAE, with market shares of 36% and 27%, respectively. Google Pay, and Samsung Pay are also well established across the region, holding significant shares in South Africa and the UAE. The popularity of tech mobile wallets in these markets is fueled by several factors, including high smartphone penetration, widespread use of debit and credit cards, and a digitally savvy, middle- to upper-income consumer base. In the UAE, for example, iPhones account for about 17% of the smartphone market, making Apple Pay a natural fit for mobile payments. Largest mobile wallets by market share: Egypt: Fawry (40%) Ghana: MoMo (MTN) (55%) Kenya: M-Pesa (95%) Nigeria: OPay (51%) Saudi Arabia: Apple Pay (36%) South Africa: Bank mobile wallet apps (41%) Turkey: Papara (32%) Mobile wallet distribution in key MEA markets:
Zawya
09-05-2025
- Business
- Zawya
Airtel Money IPO slated for H1 2026: IFR
An IPO of Airtel Money could come next year, parent Airtel Africa said on Thursday alongside the release of financial results that prompted a slump in its share price. Airtel Africa's London-listed shares were down 8.1% at 156.5p after 3pm in London, having been down as much as 10.8%, following results for the year to March 31 showing an 11.1% fall in operating profit to US$1.46bn. Chief executive Sunil Taldar said the company is making 'significant progress in our preparations for the Airtel Money IPO and remain committed to this objective. However, we are also mindful of evolving market conditions". The listing is being prepared for the first half of next year. Reports in 2024 of a potential IPO for the mobile money unit suggested a valuation of around US$4bn. Mobile money revenue was US$994m for the year, up 18.8% and 29.9% on a constant currency basis, and underlying Ebitda was US$525m for the year, giving a margin for the unit of 52.8%. Mobile money subscribers increased 17.3% to 44.6 million at the end of March compared with a year earlier and the annual transaction value increased to US$136.5bn, a 32% increase at constant currencies. Airtel Africa floated in London for £541m in June 2019 with a £3.1bn market capitalisation after pricing at 77p per share. The market cap is now around £5.8bn. Airtel Africa has also carried out IPOs for Airtel Malawi in 2020 and Airtel Uganda in 2023.
Reuters
08-05-2025
- Business
- Reuters
UK's Airtel Africa to list Airtel Money in first half of 2026
A woman speaks on her cellphone as she walks past a mobile phone service centre operated by Kenyan's telecom operator Airtel Kenya in downtown Nairobi, Kenya July 15, 2021. REUTERS/Thomas Mukoya/File Photo Purchase Licensing Rights , opens new tab May 8 (Reuters) - Britain's Airtel Africa (AAF.L) , opens new tab on Thursday said it expects to list Airtel Money, its mobile money services unit, in the first half of the calendar year 2026. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. Reporting by Yamini Kalia in Bengaluru Our Standards: The Thomson Reuters Trust Principles. , opens new tab Share X Facebook Linkedin Email Link Purchase Licensing Rights
