Airtel Africa has recorded a significant turnaround in its financial performance, reporting a profit after tax of $248 million for the nine months ending December 31, 2024.
This marks a dramatic improvement from the modest $2 million profit posted during the same period in 2023. The company’s latest financial result, released on Thursday, attributes this remarkable growth to a $94 million exceptional gain following the appreciation of the Nigerian naira and the Tanzanian shilling, which contributed to a more favorable exchange rate environment for the telecom giant.
Despite the strong profit recovery, Airtel Africa’s earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $1.68 billion, reflecting an 11.9 percent decline in reported currency terms. The company explained that this was largely due to higher operational costs, particularly increased fuel expenses and a lower contribution from its Nigerian business.
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Nevertheless, the telecom provider implemented cost-efficiency measures that helped improve its EBITDA margins, rising from 45.3 percent in the first quarter of 2025 to 46.9 percent in the third quarter.
The company’s revenue for the nine-month period grew by 20.4 percent in constant currency, reaching $3.64 billion. This growth was driven by a significant increase in the number of subscribers and the growing adoption of mobile money services across its markets. However, in reported currency, revenue declined by 5.8 percent due to the persistent impact of currency devaluations in several countries where Airtel Africa operates.
Airtel Africa’s total customer base expanded by 7.9 percent year-on-year, bringing the total number of subscribers to 163.1 million. The company also recorded substantial growth in its data segment, as the number of data subscribers increased by 13.8 percent to 71.4 million. With rising demand for digital services, the company saw data usage per customer surge by 32.3 percent, reaching an average of 6.9 gigabytes per month. The increase in data consumption was further supported by a rise in smartphone penetration, which climbed by 5.2 percent to 44.2 percent.
The company’s mobile money business played a crucial role in sustaining growth, with mobile money subscribers increasing by 18.3 percent to reach 44.3 million. Mobile money transaction value also rose significantly by 33.3 percent, with an annualized transaction volume hitting $146 billion. The increasing reliance on digital financial services helped drive mobile money revenue growth, which climbed by 29.6 percent in constant currency terms.
Airtel Africa’s overall mobile services also experienced growth, with voice revenue increasing by 9.8 percent, data revenue rising by 29.5 percent, and mobile money revenue surging by 29.6 percent. These strong performances helped support an overall increase in Average Revenue Per User (ARPU), which grew by 12 percent year-on-year. Data ARPU saw a 15 percent rise, while mobile money ARPU increased by 11.8 percent, reinforcing the company’s ability to generate higher revenues from its expanding customer base.
Commenting on the company’s performance, Sunil Taldar, CEO of Airtel Africa, expressed optimism about the company’s strategic direction.
“We have delivered improved operational and financial performance, driven by our focus on customer experience, network expansion, and digital transformation.
“Demand for our services remains strong despite economic challenges, and our cost efficiency program has contributed to EBITDA margin expansion,” he said.
Taldar highlighted that demand for Airtel Africa’s services remained strong despite macroeconomic challenges and that the company’s cost-efficiency initiatives had contributed to the expansion of its EBITDA margin.
He also pointed to signs of currency stabilization in some markets, particularly in Nigeria, where the country’s regulatory authority, the Nigerian Communications Commission (NCC), has provided support for tariff adjustments. This development, according to him, is expected to contribute to a more stable operating environment in the coming months. However, he acknowledged that currency volatility and broader macroeconomic challenges continue to pose risks, though the company remains committed to investing in network expansion and digital inclusion to sustain long-term growth.
Despite the positive financial turnaround, Airtel Africa still faces notable risks that could affect its future performance. Currency fluctuations remain a significant challenge, as many African currencies continue to experience volatility, which can impact the company’s earnings. Rising inflation and increasing costs of fuel, logistics, and infrastructure could further strain margins, especially in markets where economic conditions remain fragile.
Additionally, regulatory uncertainty continues to be a major factor, as governments in various African countries frequently introduce new policies related to tariffs, taxation, and telecom regulations that could impact operations.
Nevertheless, Airtel Africa appears well-positioned to maintain its momentum, supported by the ongoing expansion of its mobile money platform, increasing data consumption, and a resilient subscriber base.