The Airtel Africa plc has recorded strong growth in customer base and data usage despite currency headwinds, reports ITREALMS.
The telecommunications giant reported a 8.7 per cent increase in its total customer base, reaching 166.1 million, and a significant 14.1 per cent surge in data customers to 73.4 million.
The company highlighted the success of its digital inclusion strategy, which contributed to a 4.3% rise in smartphone penetration among its users, now standing at 44.8 per cent.
This, ITREALMS gathered, increased adoption of smartphones fueled a substantial 30.4 per cent jump in data usage per customer, averaging 7.0 GB, and consequently driving data Average Revenue Per User (ARPU) growth of 15.4 per cent in constant currency.
Airtel Africa also saw strong momentum in its mobile money segment. The subscriber base for Airtel Money grew by 17.3 per cent to 44.6 million, supported by an expanding agent network and enhanced digital offerings. This growth translated to an 11.4 per cent increase in constant currency ARPU for mobile money.
ITREALMS notes that the transaction value processed through the platform saw a significant 34 per cent increase in constant currency in the fourth quarter, reaching an annualized value of $145 billion.
Sunil Taldar, Chief Executive Officer of Airtel Africa, commented on the results, stating, "We have reported another strong operating performance as our strategy continues to deliver against the significant opportunity that exists across our markets. The focus on our refreshed strategy has seen continued investment in the network while also driving improvements in our digital platforms and offerings to further enhance the customer experience."
The company's commitment to providing a superior customer experience was underpinned by continued network investment, including the rollout of 2,583 new sites and approximately 3,300 kilometers of fiber optic cable. This infrastructure expansion aims to support the increasing demand for data across the region.
Financially, Airtel Africa reported revenues of $4,955 million, representing a strong 21.1% growth in constant currency. However, due to currency devaluations, particularly the Nigerian Naira, reported revenues saw a slight decline of 0.5%. The company noted an encouraging acceleration in revenue growth in the final quarter, with a 23.2% increase in constant currency and 17.8% in reported currency as currency headwinds eased.
Underlying Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at $2,304 million, a 5.1% decrease in reported currency, with an underlying EBITDA margin of 46.5%. This margin was impacted by increased fuel prices and a lower contribution from Nigeria. However, the company highlighted a positive trend of sequential margin expansion throughout the year, rising from 45.3% in the first quarter to 47.3% in the fourth quarter, attributed to a more stable operating environment and the benefits of its cost efficiency program.
Profit after tax showed a significant improvement, reaching $328 million compared to a loss of $89 million in the prior period, which was heavily impacted by derivative and foreign exchange losses, primarily in Nigeria. Basic Earnings Per Share (EPS) also improved to 6.0 cents from a negative 4.4 cents in the previous year.
Looking ahead, Airtel Africa reported capital expenditure of $670 million for the year, below its guidance due to a deferral of data center investments. The company anticipates capital expenditure between $725 million and $750 million for the next year as it continues to invest in future growth.
Airtel Africa has made strides in strengthening its balance sheet by reducing its foreign currency debt exposure by $702 million over the year. Additionally, 93% of its operating company debt (excluding lease liabilities) is now in local currency, up from 83% a year ago.
The Board of Directors has recommended a final dividend of 3.9 cents per share, bringing the total dividend for the full year to 6.5 cents per share, a 9.2% increase year-on-year, aligning with the company's dividend policy. Furthermore, Airtel Africa returned $120 million to shareholders through share buyback programs during the year.
Regarding the anticipated IPO of its mobile money business, Mr. Taldar stated, "We are making significant progress in our preparations for the Airtel Money IPO and remain committed to this objective. However, we are also mindful of evolving market conditions. Therefore, subject to these conditions, we anticipate a listing event in the first half of calendar year 2026."
While acknowledging the recent stability in the operating environment, Airtel Africa remains cautious about potential global developments that could impact its business. The company reiterated its focus on executing its strategy to transform the lives of its customers and support economic prosperity across its markets.
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