Airtel Africa FY 2025 presentation: Revenue growth accelerates to 23.2% in Q4

Airtel Africa plc (LSE:LON:AAF) presented its full-year results for the fiscal year ended March 31, 2025, showcasing strong revenue growth acceleration and sequential margin improvement despite significant currency headwinds across its African markets.

Executive Summary

Airtel Africa reported constant currency revenue growth of 21.1% for the full year, with momentum building throughout the period to reach 23.2% in Q4’25. The company’s EBITDA grew 18.1% in constant currency to $2,304 million, though reported currency figures showed a 5.1% decline due to devaluation impacts, particularly in Nigeria.

As shown in the following key financial metrics, the company maintained strong operational performance while navigating currency challenges:

The company’s customer base expanded to 166.1 million, up 8.8% year-over-year, while smartphone penetration increased to 44.8%. Mobile money continued to be a growth driver, with customer numbers rising 17.3% to 44.6 million and annualized transaction value reaching $145 billion.

Quarterly Performance Highlights

A standout feature of Airtel Africa’s FY’25 performance was the consistent acceleration in revenue growth and margin improvement throughout the year, demonstrating the company’s ability to adapt to challenging market conditions.

As illustrated in the following quarterly progression chart, both revenue growth and EBITDA margins showed consistent improvement:

The second half of the fiscal year showed particularly strong momentum across key operational metrics compared to H1’25:

Regional performance varied, with Nigeria showing the strongest revenue growth at 36.7% in constant currency, despite significant currency devaluation. East Africa delivered 21.8% revenue growth with stable margins, while the Francophone region showed improving trends with 9.5% growth.

Strategic Initiatives

Airtel Africa’s strategy continues to focus on digital inclusion and financial services expansion across a continent with significant untapped potential. The company highlighted the market opportunity in its presentation:

The company’s strategic framework centers on delivering exceptional customer experience while expanding its service offerings:

Mobile money remains a key strategic focus, with the service expanding its reach and use cases. The company has grown its agent network to 1.7 million and increased mobile money penetration within its GSM customer base to 26.8%:

This expansion has translated into strong financial performance for the mobile money segment:

Beyond mobile money, Airtel Africa is positioning itself for future growth through investments in enterprise solutions and home broadband. The company has activated the 2Africa submarine cable with multi-terabit capacity and is constructing a 38MW hyperscale data center in Lagos, Nigeria.

Detailed Financial Analysis

Airtel Africa’s revenue growth of 21.1% in constant currency was driven by strong performance across segments, though currency devaluation resulted in a 0.5% decline in reported figures:

While EBITDA grew 18.1% in constant currency, margins were impacted by inflationary pressures, particularly in energy costs:

The company has made significant progress in reducing foreign exchange exposure, with 93.4% of operating company debt now denominated in local currency, up from 83% in the prior year. This strategy, while increasing interest costs, has helped mitigate the impact of currency volatility.

Capital expenditure for the year totaled $670 million, slightly below guidance primarily due to the deferral of data center investment. For FY’26, the company has guided to capex of $725-750 million.

The Board recommended a final dividend of 3.9 cents per share, bringing the total dividend for FY’25 to 6.5 cents per share, representing a 9.2% increase year-over-year in line with the company’s progressive dividend policy.

Forward-Looking Statements

Airtel Africa presented an optimistic outlook based on favorable demographics and strong demand for its services across the continent:

The company expects to maintain its growth trajectory through continued network investment, with a focus on expanding data capacity and mobile money services. Management highlighted the opportunity to further penetrate the smartphone market, which currently stands at around 50% of customers, and to increase financial inclusion in a region where 65-70% of adults remain unbanked.

For FY’26, Airtel Africa plans to continue its cost optimization program to mitigate inflationary pressures while investing in growth opportunities, particularly in enterprise solutions and home broadband.

The presentation demonstrates Airtel Africa’s resilience in navigating challenging macroeconomic conditions while maintaining strong operational momentum. With accelerating revenue growth, sequential margin improvement, and strategic investments in high-growth segments, the company appears well-positioned to capitalize on the significant growth potential across its African markets.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.