Airtel Africa’s Total Customer Base Grows 6.1%, Revenue Ups 19.9%

Airtel Africa’s latest half-year results reveal a story of strategic resilience, operational excellence, and bold investment in the future of Africa’s digital and financial landscape.

At a glance, Airtel Africa’s numbers are powerful: a 6.1% customer base expansion, a data-savvy customer base growing by 10.4%, and a marked increase in mobile money subscribers by 13.4%. For a region ripe with opportunities and challenges, these are more than figures—they reflect Airtel Africa’s role in driving digital and financial inclusion for a young and dynamic population.

A Data-Driven Surge and Financial Inclusion

The digital era is here, and Airtel Africa is ensuring it reaches every corner of Sub-Saharan Africa. Data usage per customer shot up by 30.9% to 6.6 GB per month, driven by a leap in smartphone penetration, now at 42.9%. Behind these numbers is a concerted strategy of network investment, from the deployment of 2,800 new sites to expanding fiber infrastructure by 3,500 kilometers. With data ARPU rising by 13.5%, Airtel Africa is monetizing data while empowering a generation of digitally savvy Africans.

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Airtel Money, the company’s mobile money arm, showcases its ongoing investment in expanding financial access. With a robust 41.5 million subscribers—a 13.4% increase—Airtel Africa is actively championing financial inclusion across its markets. The annualized transaction value of $128 billion, a 30.1% increase, underscores Airtel Africa’s pivotal role in the digital financial revolution, a solution to the low levels of traditional banking access across the continent.

Revenue Resilience Amid Currency Headwinds

Despite macroeconomic pressures, including currency devaluation—most notably in Nigeria—Airtel Africa’s revenue in constant currency grew by 19.9%, hitting a 20.8% acceleration in the latest quarter. Mobile services revenue surged by 18.4%, while Mobile Money revenue saw an impressive 28.8% growth. Though reported currency revenue dropped by 9.7% to $2.37 billion, Airtel Africa’s commitment to cost optimization and operational efficiencies has kept its EBITDA margins competitive, achieving 46.4% in Q2.

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Airtel Africa’s proactive cost management has been a lifeline in this climate. Though EBITDA margins dipped initially due to surging fuel prices and Nigeria’s currency depreciation, the company’s cost-cutting program launched earlier this year has begun bearing fruit. Constant currency EBITDA grew by 13.5%, showing that Airtel Africa’s adaptability is not just reactive but forward-thinking.

Strategic Capital Allocation for Long-Term Growth

Capital expenditure reached $316 million, with Airtel Africa’s commitment to growth unwavering. Capex is forecasted to range between $725 million and $750 million for the year, a testament to the company’s belief in Africa’s untapped potential. In a move that bolsters this vision, Airtel has extended its tower lease agreements with American Tower Corporation (ATC) for 12 years, covering 7,100 sites. This strategic renewal emphasizes a focus on renewable energy investments, setting the stage for medium-term operational savings.

Additionally, Airtel Africa’s $809 million reduction in foreign currency debt has brought it to only 11% of its OpCo debt—a move that sharply reduces currency-related risks and reinforces financial stability. With leverage edging up due to lease renewals, Airtel is confident this change is manageable and expects minimal further impact from future renewals.

CEO Insights: A People-Centric Vision for Airtel Africa’s Future

Sunil Taldar, Airtel Africa’s CEO, encapsulates this growth story with a vision centered on enhancing customer experience. His focus on distribution, simplified customer journeys, and top-tier network quality is laying a foundation for growth in the burgeoning B2B and home broadband markets. “Our opportunity across markets is immense,” Taldar emphasizes, recognizing the value of Africa’s young population and accelerating smartphone adoption.

“We’ve already seen cost optimization pay off, with EBITDA margins rising quarter-on-quarter,” says Taldar, underscoring Airtel Africa’s commitment to a “de-risked” financial position and a digital-first approach to financial and telecom services. The $100 million share buyback and interim dividend increase of 9% to 2.6 cents per share affirm the company’s long-term shareholder value.

Airtel Africa’s Path Forward

Airtel Africa is not just a telecom giant; it’s a vital force in unlocking Africa’s digital and economic potential. With a clear strategy in place, from network enhancement to financial inclusion, Airtel Africa is transforming connectivity and making financial independence a reality for millions. In the words of Taldar, “We remain absolutely focused on executing against our strategy,” as Airtel Africa continues to expand the digital frontier across Africa, not just as a service provider but as a crucial partner in Africa’s growth story.

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