By Our Reporter
Airtel Africa has released strong financial results for the year ending March 31, 2025, showcasing a significant increase in subscriber numbers and digital services alongside aggressive investment strategies. However, concerns have been raised about the impact of rising tariffs and economic pressures in key markets, which may be hidden costs behind this apparent success.
The telecom giant reported an 8.7% growth in its total customer base, reaching 166.1 million, with smartphone users increasing by 20% to 74.4 million. Each customer’s data usage surged by 30.4%, contributing to a 15.4% rise in average revenue per user (ARPU) for their data services. Additionally, Airtel’s mobile money service expanded its reach, growing its user base by 17.3% to 44.6 million and generating an impressive annualized transaction value of $145 billion.
From a financial perspective, revenue in constant currency climbed by 21.1% to $4.96 billion. However, due to currency devaluations—most notably in Nigeria—reported revenue actually saw a slight decline of 0.5%. Notably, tariff increases in Nigeria played a key role in boosting performance in the final quarter, with revenue growth accelerating to 23.2% in constant currency and 17.8% in reported terms.
Mobile services revenue increased by 19.6%, primarily driven by a 30.5% rise in data revenue and a robust 29.9% improvement in mobile money revenue. The underlying EBITDA margin also saw an uptick to 46.5%, with fourth-quarter margins reaching 47.3%. After facing a loss of $89 million last year, net profit rebounded to $328 million, supported by lower foreign exchange losses.
However, not all indicators were positive. The earnings per share (EPS) before exceptional items fell to 8.2 cents, reflective of rising finance costs associated with tower lease renewals. The company reported capital expenditures of $670 million—less than anticipated—but plans to increase this to up to $750 million in the coming year. Furthermore, Airtel strategically reduced its foreign currency debt by $702 million, raising local currency debt to 93% of its total liabilities.
In a bid to reward its shareholders, Airtel announced a total annual dividend of 6.5 cents per share, an increase of 9.2%, and disclosed plans for a $120 million share buyback program. Looking ahead, the company is preparing for an Airtel Money IPO set for early 2026.
Despite these achievements, CEO Sunil Taldar emphasizes that Airtel remains dedicated to “digital inclusion” and “resilience.” Nonetheless, the sustainability of this growth continues to be questioned in light of economic uncertainties and the financial burden on customers due to rising costs.