Airtel Africa Reports 31% Q1 Revenue Growth, Beats Analyst Estimates

Airtel Africa reported a 31% increase in first-quarter revenue to $1.85 billion, significantly outperforming the consensus analyst estimate of $1.66 billion. The strong top-line growth was fueled by a substantial expansion of its customer base across the continent.

Earnings and Profitability Beat

The company's profitability also saw robust growth during the quarter. Key financial metrics surpassed market expectations:

• Adjusted EBITDA: Reached $928 million, beating the analyst forecast of $796.17 million.
• Operating Profit: Totaled $627 million for the period.
• Basic Earnings Per Share (EPS): Rose 27% year-over-year to 4.4 cents.
• EPS before exceptional items: Climbed 57%.

During the quarter, Airtel Africa continued its share buyback program, repurchasing 10.2 million shares for a total of $46.6 million, according to its earnings release.

Data and Mobile Money Drive Growth

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The revenue surge was underpinned by strong customer acquisition and increased usage in key business segments. The company's total customer base grew by 11.6% to 189 million users.

Growth in the data segment was particularly strong, with data customers increasing by 15.5%. This led to a 27.2% rise in data revenue in constant currency, supported by higher smartphone penetration and a 10.3% increase in data average revenue per user (ARPU). The mobile money division also performed well, with revenue climbing 25.8% in constant currency, driven by a 23.3% increase in mobile money customers.

Outlook and IPO Plans

Looking ahead, Airtel Africa cautioned that it expects higher energy costs to create inflationary pressures that could weigh on its EBITDA margins in the near term. However, the company stated its accelerated investment program remains on track to capitalize on growth opportunities.

Airtel Africa also confirmed its corporate strategy for its high-growth mobile money unit, selecting London as the preferred listing venue for the planned initial public offering (IPO) of Airtel Money, which is anticipated in 2026.