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Introduction & Market Context
Airtel Africa (LSE:AAF) presented its results for the half-year ended September 30, 2025, on October 28, showcasing strong performance across all business segments. The company’s stock responded positively, rising 13.79% following the announcement, as investors reacted to impressive growth metrics and improved profitability.
Operating across multiple African markets characterized by young, fast-growing populations with a median age of 19.8 years (compared to 42.6 in developed markets), Airtel Africa continues to capitalize on the continent’s digital transformation and financial inclusion opportunities.
Financial Performance Highlights
Airtel Africa reported substantial revenue growth of 24.5% in constant currency terms (25.8% in reported currency), reaching $2,982 million for H1 2026. This growth was driven by strong performance across all business segments.
As shown in the following chart of financial highlights:
EBITDA rose to $1,447 million, representing growth of 31.5% in constant currency (33.2% in reported currency), while EBITDA margins expanded by 268 basis points to 48.5%. The company’s earnings per share before exceptionals increased to 8.3 cents, and free cash flow turned positive at $368 million, compared to negative $79 million in H1 2025.
The breakdown of revenue growth by segment demonstrates the balanced contribution from various business lines:
Mobile services revenue grew by 23.1% to $2,495 million, while mobile money revenue increased by 30.2% to $623 million. This diversified growth pattern underscores the company’s successful execution across multiple business verticals.
Strategic Initiatives and Growth Drivers
Airtel Africa’s strategic focus remains centered on providing a great customer experience through multiple initiatives, as illustrated in their strategy framework:
The company has consistently delivered against its strategic objectives, focusing on digital and financial inclusion. Smartphone penetration increased to 46.8% (up 3.8%), mobile money customers grew by 20% to 49.8 million, and annualized mobile money total processed value reached $193 billion.
The mobile money segment continues to show substantial growth potential, with the number of customers increasing from 36.5 million in H1 2024 to 49.8 million in H1 2026. Total processed value grew from $55.7 billion to $88.8 billion over the same period.
Airtel Africa has also expanded its strategic partnerships, including a collaboration with Starlink and network infrastructure sharing agreements with Vodacom and MTN to promote digital inclusion. The company is investing in data centers, with a 44MW facility under construction in Kenya and a 38MW center being built in Lagos, Nigeria.
Regional Performance
Airtel Africa reported strong performance across all its regional segments. Nigeria led with revenue growth of 49.2% to $699 million and an EBITDA margin expansion of 768 basis points to 56.1%. East Africa saw revenue increase by 19.8% to $1,425 million, while Francophone Africa posted 16.1% revenue growth to $854 million.
The company’s EBITDA margin expansion was driven by both revenue growth and cost efficiencies:
This margin improvement reflects Airtel Africa’s ability to scale operations efficiently while growing its customer base and service offerings.
Future Outlook and Guidance
Airtel Africa’s outlook remains positive, supported by favorable demographic trends and increasing digital adoption across its markets. The company expects continued growth in smartphone penetration, which is projected to increase from 51% in 2023 to 81% by 2030 in Sub-Saharan Africa.
The company has declared an interim dividend of 2.84 cents per share, representing a 9.2% increase year-on-year, demonstrating confidence in its future cash generation capabilities.
According to the earnings call transcript, Airtel Africa has revised its capital expenditure guidance upward to $875-$900 million, focusing on network expansion and enhancing digital inclusion. The company is also considering a potential mobile money IPO in the first half of 2026, which could unlock additional shareholder value.
CEO Sunil Taldar emphasized the company’s commitment to transforming lives across Africa by bridging the digital divide, noting the "fantastic growth opportunity" presented by the region’s large, young population and low penetration of smartphones and home broadband.
With its strong financial performance, strategic initiatives, and focus on high-growth segments, Airtel Africa appears well-positioned to capitalize on the significant digital and financial inclusion opportunities across its African markets.
Full presentation:
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