Airtel Africa delivers strong Q1 growth as digital demand grows

DAR ES SALAAM: Airtel Africa has reported robust growth in its operating and financial performance for the first quarter ended June 30, 2025, thanks to an effective strategy execution, sustained demand for digital and financial services, and ongoing network investment across its markets.

According to the telecom’s Q1 performance report, the company the company saw its customer base growing by 9.0 percent to 169.4 million, with data customers rising 17.4 percent to 75.6 million.

It is attributed in the report that data usage surged by 47.4 percent, driven by growing smartphone penetration, which climbed to 45.9 performance, and growing digital adoption.

While Data ARPU rose by 18.5 percent in constant currency, Airtel Money customers grew by 16.1 percent to 45.8 million, with transaction value rising 35 percent to $162 billion and ARPU increasing 11.3 percent.

The company rolled out 2,300 new sites, expanding coverage to 37,579 sites, and extended its fibre network by 2,700 km to over 79,600 km. 4G population coverage now stands at 74.7 percent.

Regarding financial performance recorded during the particular period, the company’s revenue grew 24.9 percent in constant currency to $1.415 billion, and 22.4 percent in reported terms, boosted by tariff adjustments and strong performance in Francophone Africa.

Also, mobile service revenue rose 23.8 percent, with voice up 13.9 percent, data up 38.1 percent, and mobile money up 30.3 percent.

The Q1 performance report also indicated that EBITDA surged 29.8 percent to $679 million, with margins improving to 48.0 percent, up from 45.3 percent.

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Airtel Africa also saw its profit after tax rising sharply to $156 million, compared to only $31 million in the prior period, supported by forex gains and reduced derivative losses.

Basic EPS increased to 3.4 cents, up from 0.2 cents; EPS before exceptional items also improved.

On capital and debt management, capex stood at $121 million, with full-year guidance maintained at $725–$750 million while debt localisation efforts continued, with 95 percent of OpCo debt now in local currencies, up from 86 percent last year.

The leverage increased to 2.2x, largely due to a $1.3 billion lease liability tied to tower contract renewals.

Airtel repurchased 7.1 million shares under its second $55 million share buyback, returning $16.9 million to shareholders.

After achieving the milestone, the company’s Chief Executive Officer, Sunil Taldar, expressed confidence in the company’s momentum.

“The scale of growth we’ve achieved reflects sustained demand for our services and the strength of our model. Our strategy remains customer-centric, as shown by initiatives like Airtel Spam Alert, an AI-powered tool to enhance network trust,” the CEO noted.

He emphasized mobile money as a cornerstone of future growth, noting a strong uptick in digital and enterprise payments.

“With smartphone penetration still at 45.9 performance, we see significant room to bridge the digital divide while delivering financial inclusion,” he said.

Strong operating and financial performance reflect effective execution of strategy and consistent demand across our markets.