Airtel Africa posts 31% revenue growth to $1.85bn as profit rises to $198m in Q1

Olufemi Adeyemi 

The telecommunications and fintech group reported revenue of $1.85 billion for the quarter ended June 30, 2026, representing a 31 percent increase from $1.42 billion recorded in the corresponding period of 2025. On a constant currency basis, revenue grew 21.1 percent, underlining strong underlying demand across its 14 African markets despite varying macroeconomic conditions.

The company's customer base expanded by 11.6 percent to 189 million, while data subscribers rose 15.5 percent to 87.3 million, reflecting growing digital adoption across the continent. Smartphone penetration increased to 51 percent, up by 5.2 percentage points from a year earlier, helping drive a sharp rise in internet usage.

Average monthly data consumption per customer climbed from 7.8GB to 10.6GB, resulting in a 56.3 percent increase in network data traffic and supporting a 10.3 percent rise in constant currency data average revenue per user (ARPU).

The strong demand for digital services also continued to strengthen Airtel Money, the group's fast-growing fintech business. Annualised total processed transaction value (TPV) surged 51.5 percent to more than $245 billion, while the platform's customer base grew 23.3 percent to 56.5 million.

According to the company, wider adoption of digital payments, expansion of financial services and increased customer engagement have reinforced Airtel Money's position as one of Africa's leading digital financial platforms.

Growth remained broad-based across Airtel Africa's operating segments. Mobile services revenue increased 19.1 percent in constant currency, while mobile money revenue rose 25.8 percent. Voice revenue grew 11.2 percent, and data revenue recorded an even stronger 27.2 percent increase.

Nigeria remained one of the group's strongest-performing markets, posting 29.8 percent constant currency revenue growth, reflecting the full impact of tariff adjustments introduced during the fourth quarter of 2025. East Africa and Francophone Africa also maintained healthy momentum with revenue growth of 17.8 percent and 18 percent, respectively.

The improved operating performance translated into stronger profitability. Operating profit rose 40.7 percent to $627 million from $446 million a year earlier, while EBITDA increased 36.6 percent to $928 million. EBITDA margin improved to 50.1 percent, up from 48 percent in the same period last year, despite rising energy costs linked to geopolitical developments.

Profit after tax climbed to $198 million, compared with $156 million a year earlier. The company said earnings benefited from stronger operating performance but were partially offset by $6 million in derivative and foreign exchange losses, compared with gains of $22 million in the prior year. Results were also impacted by an exceptional finance cost of $37 million related to the settlement of a commercial dispute involving one of its subsidiaries.

Basic earnings per share increased to 4.4 cents from 3.4 cents, while earnings per share before exceptional items rose to 5.4 cents, reflecting improved operational performance.

Operating cash generation also strengthened significantly, with net cash generated from operating activities rising 38.3 percent to $786 million.

To support future growth, Airtel Africa significantly accelerated investment in its network infrastructure during the quarter. Capital expenditure rose to $389 million, more than triple the $121 million invested during the same period last year. The company deployed over 920 new network sites—its highest-ever first-quarter rollout—and expanded its fibre network to 82,100 kilometres to improve coverage, network quality and capacity.

The group's financial position also improved, with leverage declining from 2.2 times to 1.7 times, while lease-adjusted leverage fell from 0.9 times to 0.5 times, driven largely by higher EBITDA.

As part of its capital allocation strategy, Airtel Africa's board approved a share buyback programme to repurchase up to 1 percent of its issued share capital. By June 30, the company had repurchased approximately 10.2 million shares at a total cost of $46.6 million.

"We have started this year with another pleasing performance. Our continued focus on the customer experience translated into accelerating customer base growth across all business segments. As we continue to digitise our business, we are streamlining customer journeys, increasing digital adoption and harnessing data and AI to improve service delivery and support a strong, sustainable growth profile. Smartphone penetration reached 51.0%, an increase of 5.2 percentage points over the last year, reflecting continued progress in digital adoption across our markets. Supported by sustained investment in our network, this has driven a 56.3% increase in data traffic as customers embrace digital solutions across our markets."

Speaking on Airtel Money's continued expansion, Taldar said:

"Airtel Money continues to expand financial inclusion across our markets and unlock new growth vectors. Annualised TPV in excess of $245bn increased 51.5% reflecting the strength of engagement across the ecosystem, as the suite of product continues to expand and digital adoption underpins the customer experience. As we enter the next phase of our growth journey, we are pleased to confirm London as our preferred listing venue for Airtel Money in 2026. We believe a London listing will provide access to a broad international investor base and support our ambition to unlock the long-term value of one of Africa's leading fintech platforms."

On profitability and future investments, he added:

"We continue to see our cost efficiency programme supporting EBITDA margin resilience, with EBITDA margins of 50.1% in the quarter. Higher energy costs arising from recent geopolitical developments are expected to increase inflationary pressures and weigh on EBITDA margins in the near term, however, we will continue to focus on offsetting some of this impact over the year.

"Our accelerated investment programme remains on track, with investment brought forward into Q1 as we proactively invest ahead of demand to sustain our strong operating momentum and capture the growth opportunities presented by Africa's ongoing digital transformation."

GAAP Measures (Quarter Ended)

Alternative Performance Measures (APM) (Quarter Ended)

Note: Reported currency growth rates reflect the impact of currency movements during the period and may not be indicative of future growth rates. Alternative Performance Measures (APMs) are non-GAAP financial metrics used by the company to provide additional insight into its operating performance.