Airtel Africa (AAF) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues reached $1.16 billion, up 19% in constant currency but down 16.1% in reported currency due to significant devaluation impacts, especially from the Nigerian Naira.

• Customer base grew 8.6% YoY to 155.4m; data customers up 13.4% to 64.4m; data usage per customer rose 25.1% to 6.2GB; smartphone penetration reached 41.7%.

• EBITDA margin was 45.3%, pressured by inflation, higher diesel costs, and a lower contribution from high-margin Nigeria.

• Strategic focus areas include expanding fiber, B2B, and data center businesses, with new hyperscale data centers under construction in Nigeria and Kenya.

• Launched cost efficiency program targeting network, energy, and contract costs; full benefits expected over the coming year.

Financial highlights

• Mobile services saw an 8.6% increase in customer base and 17% constant currency revenue growth; Nigeria grew over 33%, East Africa nearly 20%, Francophone region 3.6%.

• Data revenue grew 26.4% in constant currency, with a 25% increase in data usage per customer to 6.2 GB.

• Mobile money revenue rose 28% in constant currency, with a 15% increase in customer base and 29% growth in transaction value to $120 billion annualized.

• EBITDA in constant currency up 11.3%; reported EBITDA down 23.3% to $523m; EBITDA margin fell to 45.3% from 49.5% YoY.

• Profit after tax was $31m, impacted by $80m in exceptional derivative and FX losses (net of tax) from naira depreciation.

Outlook and guidance

• CapEx guidance for FY25 remains $725–$750 million; continued focus on network investment and growth.

• The company remains committed to shareholder returns, with a final FY24 dividend of $0.0357 and a $100 million buyback program.

• Cost optimization program expected to yield further sustainable savings as the year progresses.

• Management is optimistic about growth in fiber, B2B, and data center segments, especially in Nigeria.