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Investing.com -- Shares of Airtel Africa (LSE:LON:AAF) jumped 9% following the company’s third-quarter earnings release, which surpassed analyst expectations. The telecom giant reported revenues of $1.27 billion, a 4% increase over estimates. Adjusted EBITDA for the quarter also exceeded forecasts at $594 million, showing a 3.5% uptick.
The company’s performance was particularly noteworthy given the foreign exchange headwinds it faced in several markets, especially Nigeria and Malawi. Despite these challenges, Airtel Africa achieved a robust organic constant FX revenue growth of 21.3% YoY, aligning with market projections.
This growth reflects sustained demand across the company’s operational footprint. However, organic EBITDA growth was slightly under expectations at 18.5% YoY, compared to the estimated 20.7%.
Airtel Africa’s net debt increased by 7.5% to $5.3 billion, more than expected, partly due to higher diesel costs and the impact of significant currency devaluation in Nigeria. Nonetheless, the company anticipates that the recent price increase in Nigeria will support continued growth.
In December, Airtel Africa initiated a second share buyback program worth up to $100 million, with $22 million already returned to shareholders. The company has maintained its full-year outlook for fiscal year 2025, expecting improvements in EBITDA margin and capital expenditures projected to be between $725 million and $750 million.
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