Airtel Africa (AAF) Q4 2026 earnings summary

Executive summary

• Achieved strong operational and financial performance, with revenue growth of 24% in constant currency and 29.5% in reported currency, supported by telecom and financial services expansion.

• Customer base grew 10.5% to 183.5 million, with smartphone penetration at 49.5% and mobile money customers up 21.3% to 54.1 million.

• EBITDA margin reached 49.3% for the year, peaking at 50.3% in Q4, reflecting cost efficiency and disciplined CapEx investment.

• Free cash flow generation strengthened capital structure, enabling a 9.2% increase in dividend and completion of a $100 million share buyback.

• CapEx rose to $884 million, supporting network expansion and digital infrastructure.

Financial highlights

• Revenue for the year reached $6,415 million, up 24% in constant currency and 29.5% in reported currency.

• EBITDA grew 37.2% to $3,162 million, with margin up 280 basis points to 49.3%.

• Free cash flow reached $803 million, nearly four times higher than the prior period.

• EPS before exceptional items rose to 18.6 cents, with profit after tax up to $813 million.

• Lease-adjusted leverage improved to 0.5x from 1x; reported leverage improved to 1.8x from 2.3x.

Outlook and guidance

• CapEx guidance for FY 2027 set at approximately $1.1 billion, focused on coverage expansion, data capacity, home broadband, and data centers.

• Expecting increased cost inflation from rising energy prices, with a potential 2.5%-3% EBITDA margin impact if current fuel prices persist.

• Remain committed to cost efficiency to mitigate margin pressures and to executing strategy for sustainable growth.

• IPO of Airtel Money postponed to the second half of 2026 due to unfavorable market conditions.

• Industry fundamentals and demographics support continued robust growth.