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Time of India
24-07-2025
- Business
- Time of India
Airtel Africa Q1FY26 net profit jumps 5-times to $156 million
New Delhi: Bharti Airtel 's Africa business reported a five-times on-year jump in net profit to $156 million in the fiscal first quarter, driven by continued operating momentum, stable fuel prices, and an exceptional gain owing to foreign currency fluctuations. For the quarter ended June 30, 2025, profit after tax rose 95% sequentially, helped by a $22 million gain due to the Central African Franc (CFA) appreciation during the quarter. Profit in the a year-ago quarter was $31 million. Airtel Africa 's revenue rose 24.9% on-year in constant currency to $1.41 billion helped by Nigeria tariff adjustments, a strong performance in Francophone Africa, and easing currency headwinds over the last three quarter. '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,' said Sunil Taldar, CEO, Airtel Africa. He added that with smartphone penetration only at 45.9%, there is significant headroom to drive further adoption for Airtel Africa and play a key role in bridging the digital divide. Airtel Africa returned $45 million to shareholders in April 2025 following a purchase of 26.3 million ordinary shares as part of the first tranche of the company's second share buyback programme that will return up to $100 million to shareholders in two tranches. The company started the second tranche of share buyback in May 2025, where it will buy back $55 million worth of ordinary shares by November 2025. So far, the company has returned $16.9 million since the commencement of the second tranche, following a purchase of 7.1 million shares as of June 2025, Airtel Africa said. Airtel Africa's net finance cost rose 24% on-year to $173 million in Q1, reflecting an increase in interest on lease liabilities due to tower contract renewals, and increased OpCo (operating company) market debt. Finance costs also rose due to a shift in foreign currency debt to local currency debt, which carries a higher average interest rate. The group's effective interest rate increased to 12.9% in Q1 compared to 12.7% a year ago. During the June quarter, 95% of Airtel's Africa's OpCo debt (excluding lease liabilities) was in local currency, up from 86% a year ago, as part of the company's aim to reduce its foreign currency debt. Capex for the quarter ended June 30, 2025, at $121 million was 18% lower than a year ago driven largely by timing differences. The company gave a capex guidance between $725 million-$750 million for the full year. A continued operating momentum, stable fuel prices, and sustained benefits from its cost efficiency programme led to Airtel Africa's quarterly operating margins expanding to 48% from 45.3% a year ago in Q1 2026. Operational performance continued strong momentum in the fiscal first quarter with Airtel Africa's ARPU — a key performance metric — rising 4.4% sequentially to $2.4 due to a 13.2% sequential gain in net customer additions of 3.3 million. The penetration of Airtel Africa's mobile money services grew 2.8% sequentially as mobile money customer base grew to 45.8 million in the June quarter. ARPU from the mobile money services grew 5.9% sequentially to $2.1, while quarterly revenue from the mobile money business grew 8.1% on-quarter to $284 million. The data user base of Airtel Africa increased 3% sequentially to 75.6 million in the June quarter. The overall customer base across the telco's 14 African markets rose 2% sequentially to 169.4 million. Data revenue increased 10% sequentially to $548 million, helped by a 11.7% increase in data consumption.
Economic Times
08-05-2025
- Business
- Economic Times
Airtel Africa swings to $80 million profit despite Naira hit, legal costs
Bharti Airtel's Africa unit reported $80 million in net profit, compared to a net loss of $91 million, a year ago, in the fiscal fourth quarter, driven by an increase in its customer base and higher data usage, which offset higher finance costs. ADVERTISEMENT But net profit for January-March period slumped 52.6% sequentially, reflecting a $21 million charge of derivative and foreign exchange losses, particularly due to the devaluation of the Nigerian Naira. Net profit was also dragged sequentially by a $16-million exceptional expense, as provision for settlement of a legal dispute with a former group subsidiary. Airtel Africa's quarterly revenue rose 23.2% on-year in constant currency to $1.131 billion, helped by tariff adjustments in Nigeria and easing currency headwinds.'An improving operating environment and focussed execution contributed to strong momentum in our financial results with constant currency revenue growth peaking at 23.2% in Q4'25. Part of this acceleration in the last quarter has also been driven by the Nigerian tariff adjustments,' said Sunil Taldar, Airtel Africa CEO in a data user base of Airtel Africa rose 2.8% on-quarter and 14.1% on-year, to 73.4 million in Q4 FY2025. Data revenue increased 7% sequentially and 33.4% on-year, to $524 million, helped by a 3.3% increase in data consumption. ADVERTISEMENT The overall customer base across the telco's 14 African markets rose 1.8% on-quarter to 166.1 Africa's average revenue per user (ARPU) — a key performance metric — slipped 0.8% sequentially to $2.4, due to a 54.4% sequential fall in net customer additions. ADVERTISEMENT Taldar added that Airtel Africa is making significant progress in preparing for the Airtel Money IPO, anticipating a listing in the first half of 2026, subject to evolving market Africa's mobile money customer base grew to 44.6 million in the March quarter, from 44.3 million in the previous quarter. ARPU from mobile money services fell 3.7% to $2, while quarter revenue from the mobile money business grew 0.5% sequentially to $269 million. ADVERTISEMENT Airtel Africa's overall net finance cost (before exceptional items) for the March quarter was at $221 million, up 56% on-year and 1.8% sequentially, due to tower contract renewals and an increase in OpCo market costs also increased due to a shift of debt from foreign currency to local currency, which typically carries a higher average interest rate. The group has increased the proportion of local currency OpCo debt (excluding lease liabilities) to 93% as of March 31, 2025, up from 83% a year ago. ADVERTISEMENT Capex for the year ended March 31, 2025 at $670 million was 9% lower than a year ago, due to a deferral of data center investment. 'Capex guidance for the next year is between $725m and $750m as we continue to invest for future growth,' the company revenue growth and cost controls led to an increase in quarterly operating margins by 200 basis points to 47.3% in Q4 2025 from 45.3% in Q1 2025. Operating margin in FY3Q was 46.9%. 'We remain focussed on further EBITDA margin improvements subject to macroeconomic stability. This, combined with our robust capital structure and disciplined capital allocation, puts us in a strong position to continue investing in network capacity to deliver continued growth,' it added. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
08-05-2025
- Business
- Time of India
Airtel Africa FY4Q net profit at $80 million; forex charge drags growth versus FY3Q
New Delhi: Bharti Airtel 's Africa unit reported $80 million in net profit, compared to a net loss of $91 million, a year ago, in the fiscal fourth quarter, driven by an increase in its customer base and higher data usage, which offset higher finance costs. But net profit for January-March period slumped 52.6% sequentially, reflecting a $21 million charge of derivative and foreign exchange losses, particularly due to the devaluation of the Nigerian Naira. Net profit was also dragged sequentially by a $16-million exceptional expense, as provision for settlement of a legal dispute with a former group subsidiary. Airtel Africa 's quarterly revenue rose 23.2% on-year in constant currency to $1.131 billion, helped by tariff adjustments in Nigeria and easing currency headwinds. 'An improving operating environment and focussed execution contributed to strong momentum in our financial results with constant currency revenue growth peaking at 23.2% in Q4'25. Part of this acceleration in the last quarter has also been driven by the Nigerian tariff adjustments,' said Sunil Taldar, Airtel Africa CEO in a statement. The data user base of Airtel Africa rose 2.8% on-quarter and 14.1% on-year, to 73.4 million in Q4 FY2025. Data revenue increased 7% sequentially and 33.4% on-year, to $524 million, helped by a 3.3% increase in data consumption. The overall customer base across the telco's 14 African markets rose 1.8% on-quarter to 166.1 million. Airtel Africa's average revenue per user (ARPU) — a key performance metric — slipped 0.8% sequentially to $2.4, due to a 54.4% sequential fall in net customer additions. Taldar added that Airtel Africa is making significant progress in preparing for the Airtel Money IPO, anticipating a listing in the first half of 2026, subject to evolving market conditions. Airtel Africa's mobile money customer base grew to 44.6 million in the March quarter, from 44.3 million in the previous quarter. ARPU from mobile money services fell 3.7% to $2, while quarter revenue from the mobile money business grew 0.5% sequentially to $269 million. Airtel Africa's overall net finance cost (before exceptional items) for the March quarter was at $221 million, up 56% on-year and 1.8% sequentially, due to tower contract renewals and an increase in OpCo market debt. Finance costs also increased due to a shift of debt from foreign currency to local currency, which typically carries a higher average interest rate. The group has increased the proportion of local currency OpCo debt (excluding lease liabilities) to 93% as of March 31, 2025, up from 83% a year ago. Capex for the year ended March 31, 2025 at $670 million was 9% lower than a year ago, due to a deferral of data center investment. 'Capex guidance for the next year is between $725m and $750m as we continue to invest for future growth,' the company said. Accelerating revenue growth and cost controls led to an increase in quarterly operating margins by 200 basis points to 47.3% in Q4 2025 from 45.3% in Q1 2025. Operating margin in FY3Q was 46.9%. 'We remain focussed on further EBITDA margin improvements subject to macroeconomic stability. This, combined with our robust capital structure and disciplined capital allocation, puts us in a strong position to continue investing in network capacity to deliver continued growth,' it added.
Zawya
30-01-2025
- Business
- Zawya
Airtel Africa plc: Results for nine-month period ended 31 December 2024
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.' 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 Hudson Sandler Nick Lyon Emily Dillon airtelafrica@
