Airtel Africa (AAF) Q2 2025 earnings summary

Executive summary

• Achieved 19.9% constant currency revenue growth, driven by strong demand, network investment, and mobile money expansion, despite significant currency devaluation and macroeconomic challenges.

• EBITDA grew 13.5% in constant currency to $1,087m, with margin at 45.8%, though down from last year due to lower Nigeria contribution and inflationary pressures.

• Mobile customer base grew 6.1% to 156.6m, with data customers up 10.4% and mobile money subscribers up 13.4% to 41.5m; smartphone penetration rose by over 5%.

• Interim dividend increased by 9% to 2.6 cents per share, reflecting sustained value creation and a progressive dividend policy.

• Zero HoldCo debt and 89% of market debt in local currency, de-risking the balance sheet.

Financial highlights

• Revenue was $2,370m, up 19.9% in constant currency but down 9.7% in reported currency due to FX devaluation.

• EBITDA margin declined to 45.8% from 49.6% last year, mainly due to Nigeria's lower contribution and inflationary OpEx.

• Operating free cash flow at $771m, down 22% in reported currency, impacted by currency devaluation.

• EPS before exceptional items was 4.9 cents, down from 7.0 cents last year, due to FX devaluation and higher finance charges.

• Mobile Money transaction value reached $128bn annualised, up 30% in constant currency; Mobile Money EBITDA grew 33% to $247m, with margin at 53%.

Outlook and guidance

• Capex guidance for the year is $725–$750m, with continued investment in network, fibre, and digital infrastructure.

• Focus on margin improvement, cost optimisation, and expanding digital/financial inclusion.

• No further material change in leverage expected from tower lease renewals in the near-to-medium term.

• Progressive dividend policy aims for mid- to high single-digit annual growth.