Airtel Africa Plc delivered a spectacular turnaround in profitability during the first half of its financial year, posting a 375% surge in profit after tax as the pan-African telecommunications operator reaped the rewards of surging data consumption, mobile money expansion, and a favorable shift in currency markets.
The London-listed company, which operates across 14 countries in sub-Saharan Africa, reported a profit after tax of $376 million for the six months ended September 30, 2025, compared with just $79 million in the same period a year earlier. Earnings per share soared more than tenfold, from 0.8 cents to 8.3 cents.
The dramatic profit growth came despite persistent macroeconomic headwinds in several key markets, including Nigeria—the company’s largest territory—and parts of Francophone Africa, where inflation, currency volatility, and regulatory pressures have tested telecom operators in recent years.
Currency Tailwinds and Cost Control Drive Bottom Line
Much of the earnings lift was driven by a sharp reduction in finance costs and favorable currency movements. Finance expenses decreased to $304 million from $528 million in the prior year, reflecting the absence of the exceptional foreign exchange losses that had plagued the company in 2024. The appreciation of the Nigerian naira and the CFA franc against the dollar provided a significant boost to reported results.
Profit before tax jumped 269% to $656 million, while operating profit rose 35.9% to $959 million. Operating cash flow climbed 46.5% to $1.13 billion, underscoring the company’s strengthening cash generation.
Revenue reached $2.98 billion, up 25.8% in reported terms and 24.5% in constant currency—a measure that strips out the impact of exchange rate fluctuations. The company’s EBITDA margin expanded by 268 basis points to 48.5%, driven by revenue growth and operational efficiencies.
“The strength of our revenue performance and further cost efficiency initiatives has continued to support a further increase in EBITDA margins,” said Chief Executive Officer Sunil Taldar, noting that margins hit 49% in the second quarter of fiscal 2026.
Data Dethrones Voice as Biggest Revenue Stream
In a milestone for the company, data revenue overtook voice for the first time, becoming Airtel Africa’s largest revenue contributor. Data revenue surged 37% in constant currency to $1.16 billion, propelled by an 18.4% increase in data users to 78.1 million and rising smartphone penetration, which now stands at 46.8% across the group’s footprint.
Average data usage per customer climbed to 8.2 gigabytes per month, reflecting the growing appetite for video streaming, social media, and other bandwidth-intensive applications across the continent.
Voice revenue, while no longer the top contributor, still posted solid growth of 13.2% in constant currency, supported by an 11% rise in the total subscriber base to 173.8 million. Average revenue per user (ARPU) increased 14.8% to $2.90, aided by tariff adjustments and improved customer engagement.
Mobile Money Emerges as Strategic Pillar
Airtel Money, the company’s rapidly expanding mobile financial services platform, continued its impressive trajectory, contributing 21% of group revenue. The fintech arm generated $623 million in revenue during the period, up 30.2% in constant currency, while its customer base grew 20% to 49.8 million users.
The annualized total processed value (TPV) on the platform surged 35.9% to $193 billion, highlighting the growing scale and velocity of transactions. Airtel Money has become a critical avenue for financial inclusion across markets where traditional banking infrastructure remains limited.
The company confirmed that preparations for a planned initial public offering of Airtel Money remain on track, with a listing anticipated in the first half of 2026. The IPO is expected to unlock value for shareholders while providing capital to accelerate the platform’s growth.
Nigeria Leads Regional Performance
Regionally, Nigeria delivered standout results, with revenue jumping 49% in constant currency to $697 million. Data revenue in the country soared 62%, while the EBITDA margin expanded to 56%, reflecting operational improvements and the impact of tariff adjustments.
East Africa, Airtel’s second-largest region, posted revenue of $1.05 billion, up 15.6% in constant currency, with an EBITDA margin of 48%. Francophone Africa generated $749 million in revenue, up 14.5%, with a 39.5% EBITDA margin. Currency appreciation in both East and Francophone Africa contributed to stronger reported performance.
Balance Sheet Strengthens; Capex Guidance Raised
Airtel’s financial position improved markedly during the period. Net debt stood at $5.5 billion, with leverage falling to 2.1 times EBITDA from 2.3 times a year earlier. Lease-adjusted leverage improved further to 0.8 times from 1.0 times, reflecting robust cash generation and disciplined capital allocation.
The company said 95% of its operating company debt is now denominated in local currencies, significantly reducing foreign exchange exposure—a key risk factor that has stung African telecoms in the past.
Buoyed by strong performance, Airtel raised its capital expenditure guidance for fiscal 2026 to between $875 million and $900 million, up from previous projections. The increase will fund accelerated network expansion, including the rollout of 4G and 5G infrastructure and investments in data centers.
During the half year, Airtel added over 2,350 network sites, bringing the total to 38,300, with 98.5% 4G coverage and growing 5G deployment across five countries. Fiber capacity expanded by 4,000 kilometers to over 81,000 kilometers, supporting the company’s broadband ambitions.
The board declared an interim dividend of 2.84 cents per share, up 9.2% year-on-year, reflecting confidence in the company’s earnings trajectory and cash flow generation.
Strategic Bets Paying Off
Taldar emphasized that the results vindicate Airtel’s strategic focus on customer experience, network quality, and diversification into digital services.
“Our strategy has been focused on providing a superior customer experience, and the strength of these results is testament to the initiatives that we have been implementing across the business,” he said. “This strong performance gives us the confidence to increase our capex guidance as we accelerate investments to capture the full potential across our markets and deliver long-term value for all stakeholders.”
The results position Airtel Africa as one of the continent’s best-performing telecom operators, capitalizing on Africa’s youthful demographics, rising smartphone adoption, and growing demand for digital connectivity and financial services. However, the company remains exposed to currency volatility, regulatory changes, and intensifying competition in several markets.
With data usage accelerating, mobile money gaining traction, and network investments ramping up, Airtel appears well-positioned to sustain its growth momentum—provided macroeconomic conditions don’t deteriorate sharply in its core markets.
WHAT YOU SHOULD KNOW
Airtel Africa delivered a stunning 375% profit surge to $376 million in H1 2025, marking a dramatic turnaround driven by three key factors:
- Data is now king: Data revenue overtook voice for the first time, rising 37% to $1.16 billion as smartphone penetration and usage soared across 14 African markets.
- Mobile money momentum: Airtel Money contributed 21% of group revenue ($623 million), processing $193 billion annually, with an IPO planned for H1 2026.
- Currency windfall: Naira and CFA franc appreciation, combined with 95% local currency debt, slashed finance costs and boosted bottom-line profits.
