Quick Read: Airtel Africa has once again showcased its resilience and strategic growth by reporting a 20.4% increase in revenue for the nine-month period ending December 31, 2024. Despite economic challenges and currency fluctuations, the telecom giant expanded its subscriber base, boosted mobile money adoption, and optimized operations, strengthening its position as a leading telecommunications provider in Africa.
Strong Revenue Growth Despite Economic Challenges
Airtel Africa’s revenue surged to $3.64 billion, driven by increased demand for mobile services and digital financial transactions. Mobile money operations played a crucial role, contributing significantly to overall financial performance.
However, while revenue grew in constant currency, reported currency figures reflected a 5.8% decline due to currency devaluation across its markets. This highlights the challenges multinational companies face in volatile economic environments.
Growing Customer Base and Mobile Money Expansion
Airtel Africa’s customer base grew by 7.9% year-on-year, reaching 163.1 million subscribers. Key growth factors include:
A 13.8% increase in data customers, reaching 71.4 million. A 32.3% surge in data consumption per user, reflecting higher smartphone adoption (now at 44.2%). A 49% rise in data traffic, driven by increasing demand for affordable internet services.
The company’s mobile money services also saw impressive growth, with an 18.3% increase in subscribers, reaching 44.3 million users. Annualized transaction value hit $146 billion, reflecting a 33.3% increase in transaction volume. This aligns with Africa’s growing digital economy and reliance on mobile financial services.
Operational Efficiency and Cost Management
Despite strong revenue growth, Airtel Africa faced EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) pressures, declining by 11.9% in reported currency to $1.68 billion. The EBITDA margin stood at 46.2%, influenced by:
Rising fuel costs, increasing operational expenses. A lower revenue contribution from Nigeria, its largest market.
However, cost-efficiency measures helped improve EBITDA margins from 45.3% in Q1’25 to 46.9% in Q3’25, showing the company’s ability to navigate challenges and enhance profitability.
Capital expenditure (CAPEX) also declined by 7.8% to $456 million, with full-year CAPEX guidance remaining between $725 million and $750 million.
CEO’s Vision: Sustained Growth and Digital Inclusion
Airtel Africa’s CEO, Sunil Taldar, remains optimistic about the company’s growth, crediting customer-focused strategies, network expansion, and digital transformation initiatives.
“Our focus on speed and quality execution is unlocking substantial growth opportunities across our markets. The rapid increase in data traffic highlights our investments and commitment to creating value for all stakeholders,” Taldar stated.
He also highlighted positive signs of currency stabilization in some markets and regulatory support in Nigeria, which could create a more stable business environment moving forward.
The Future of Airtel Africa: Strengthening Market Leadership
Airtel Africa is well-positioned for continued success, backed by:
A growing mobile money ecosystem, driving financial inclusion. Increased smartphone penetration, fueling data demand. Ongoing network expansion and infrastructure investment for improved service delivery.
Additionally, the company’s second share buyback program, valued at $100 million, reflects confidence in future performance and shareholder value creation.
Despite currency volatility and economic uncertainties, Airtel Africa remains committed to digital inclusion, expanding network coverage, and optimizing financial operations to maintain its leadership in Africa’s telecom industry.
