Airtel Africa (AAF) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue 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.

• EBITDA margin was 45.3%, pressured by inflation, higher diesel costs, and a lower contribution from high-margin Nigeria, now down to the low 20% range of group business.

• 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%.

• Mobile money subscribers increased 14.9% YoY to 39.5m; transaction value up 28.7% in constant currency, annualized at $120bn.

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

Financial highlights

• Revenue in constant currency grew 19.0% YoY; reported revenue declined 16.1% to $1,156m due to currency devaluation, especially in Nigeria.

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

• Mobile services saw an 8.6% customer base growth and 17% constant currency revenue growth, with Nigeria up 33%, East Africa up nearly 20%, and Francophone region up 3.6%.

• Data revenue grew 26.4% in constant currency, driven by a 5% increase in smartphone penetration and 25% higher data usage per customer.

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

Outlook and guidance

• Capex guidance for FY remains $725m–$750m; continued focus on network investment and growth.

• Focus remains on investing for growth, especially in digital and financial inclusion, and maintaining a positive shareholder return policy, including a $0.0357 final dividend and a $100 million buyback.

• Management is optimistic about future growth, especially in Nigeria, fiber, B2B, and data centers.

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

• Management remains focused on margin improvement and reducing foreign currency exposure.