Airtel Africa posts $328m profit after tax, eyes mobile money IPO in 2026

AFRICA: Airtel Africa plc has posted a significant turnaround, recording a profit after tax of 328 million US dollars for the year ended March 31, 2025—up from a loss of 89 million US dollars in the previous period. This is driven by strong operational performance, reduced foreign exchange losses, and sustained investment in digital and …

AFRICA: Airtel Africa plc has posted a significant turnaround, recording a profit after tax of 328 million US dollars for the year ended March 31, 2025—up from a loss of 89 million US dollars in the previous period.

This is driven by strong operational performance, reduced foreign exchange losses, and sustained investment in digital and financial inclusion across its markets.

according to the report ,the telecoms and mobile money services provider highlighted that the improved profit was mainly due to reduced derivative and currency exchange losses, particularly in Nigeria, which had impacted earnings last year.

Basic earnings per share (EPS) jumped to 6.0 cents from a negative 4.4 cents, although EPS before exceptional items dropped slightly to 8.2 cents from 10.1 cents, reflecting increased finance costs linked to tower contract renewals and deferred currency devaluation effects.

Revenue in constant currency grew by 21.1 per cent to 4.96 billion US dollars, though reported revenue dipped slightly by 0.5 per cent due to currency depreciation. The company experienced notable revenue acceleration in the final quarter, rising by 23.2 per cent in constant currency and 17.8 per cent in reported currency.

Mobile services continued to be a strong pillar of growth, with voice revenue increasing by 10.6 per cent and data revenue surging by 30.5 per cent. Airtel Money, the group’s financial services arm, posted a 29.9 per cent revenue increase in constant currency.

The firm also witnessed solid customer growth. Its total customer base rose by 8.7 per cent to 166.1 million, while data customers jumped 14.1 per cent to 73.4 million. Smartphone penetration reached 44.8 per cent, and data usage per customer increased by 30.4 per cent to 7GB.

Meanwhile, Airtel Money subscribers rose by 17.3 per cent to 44.6 million, supported by an expanded agent network and diversified digital services. The value of mobile money transactions in Q4 alone grew by 34 per cent in constant currency, with an annualised transaction value reaching 145 billion US dollars.

Underlying EBITDA for the year stood at 2.3 billion US dollars, reflecting a 5.1 per cent decline in reported currency, with margins at 46.5 per cent—down from 48.8 per cent the previous year. However, quarterly margins improved steadily, climbing from 45.3 per cent in Q1 to 47.3 per cent in Q4, aided by cost efficiency efforts and a stabilised operating environment.

On its financial performance, capital expenditure for the year was 670 million US dollars, below forecast due to postponed data centre investments. For the upcoming financial year, the company projects capex between 725 million and 750 million US dollars to continue driving network growth.

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Airtel Africa also made progress in improving its capital structure, reducing foreign currency debt by 702 million US dollars. Currently, 93 per cent of operating company debt is in local currency, up from 83 per cent a year ago.

Despite an increase in lease liabilities following tower contract renewals—which raised total leverage to 2.3x—the Board recommended a final dividend of 3.9 cents per share, bringing the full-year dividend to 6.5 cents, a 9.2 per cent increase. Additionally, 120 million US dollars was returned to shareholders via share buybacks.

Commenting on  the trading update, Chief Executive Officer Mr Sunil Taldar said: “This has been another strong year of delivery, with our strategy continuing to bear fruit. The steady growth in smartphone adoption, data traffic, and mobile money services reflects our focus on digital and financial inclusion.”

He added that preparations for the Airtel Money IPO are well underway, with a potential listing targeted for the first half of calendar year 2026, subject to market conditions.

“We remain committed to transforming lives across our markets and supporting economic prosperity, while staying alert to global macroeconomic developments that may influence our business,” said Mr Taldar.

Airtel Africa operates across 14 countries, including Tanzania, and remains one of the continent’s leading providers of telecommunications and mobile financial services.