Airtel Africa has once again demonstrated its resilience and strategic agility by reporting a 20.4% increase in revenue for the nine-month period ending December 31, 2024. Despite economic headwinds and currency fluctuations across its markets, the telecom giant has managed to expand its subscriber base, enhance mobile money adoption, and optimize operational efficiencies, solidifying its position as one of Africa’s leading telecommunications providers.
Strong Revenue Growth Amid Economic Challenges
Airtel Africa’s revenue surged to $3.64 billion, driven primarily by increased demand for mobile services and digital financial transactions. The company’s mobile money operations have been particularly noteworthy, contributing significantly to its overall financial performance.
However, the revenue growth in constant currency masks a 5.8% decline in reported currency, largely due to currency devaluation across its operating markets. This highlights one of the key challenges facing multinational companies operating in volatile economic environments.
Expanding Customer Base and Mobile Money Dominance
One of Airtel Africa’s biggest strengths lies in its growing customer base, which rose by 7.9% year-on-year, reaching an impressive 163.1 million subscribers. This growth is fueled by:
- A 13.8% rise in data customers to 71.4 million.
- Data consumption per user surging by 32.3%, reflecting increased smartphone penetration (now at 44.2%).
- A 49% rise in data traffic across its markets, underscoring the growing demand for affordable internet services.
The company’s mobile money operations also saw remarkable growth, with an 18.3% increase in mobile money subscribers to 44.3 million users. Annualized transaction value skyrocketed to $146 billion, representing a 33.3% growth in transaction volume. This growth aligns with Africa’s rapid digital transformation and increasing reliance on mobile financial services.
Operational Efficiency and Cost Management
Despite the impressive revenue growth, Airtel Africa faced EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) pressures, which declined 11.9% in reported currency to $1.68 billion. The EBITDA margin stood at 46.2%, impacted by:
- Rising fuel costs, which have increased operational expenses.
- A lower revenue contribution from Nigeria, its largest market.
However, Airtel Africa implemented cost-efficiency measures that improved EBITDA margins from 45.3% in Q1’25 to 46.9% in Q3’25, demonstrating the company’s ability to navigate challenges and enhance profitability.
Capital expenditure (CAPEX) also decreased by 7.8% to $456 million, with full-year CAPEX guidance remaining between $725 million and $750 million.
CEO’s Vision: Sustained Growth and Digital Inclusion
Airtel Africa’s CEO, Sunil Taldar, remains optimistic about the company’s trajectory. He attributes the positive performance to customer-focused strategies, aggressive network expansion, and digital transformation initiatives.
Taldar emphasized the significant demand for Airtel’s services despite economic challenges, stating:
“Our focus on speed and quality execution is enabling us to unlock substantial opportunities for growth across our markets. The scale of data traffic growth across our markets reflects the investments we have made and our relentless strategy to create value for all stakeholders.”
He also noted encouraging signs of currency stabilization in some markets and regulatory support from Nigeria’s Communications Commission (NCC) regarding tariff adjustments, which could contribute to a more stable operating environment moving forward.
The Future of Airtel Africa: Expanding Market Leadership
Airtel Africa is well-positioned for sustained growth, given:
✅ Its expanding mobile money ecosystem, which continues to drive financial inclusion.
✅ A strong digital adoption trend, with increasing smartphone penetration fueling data demand.
✅ Continued network expansion and infrastructure investment, ensuring better service delivery.
Additionally, the company’s second share buyback program, valued at $100 million, signals confidence in future performance and shareholder value creation.
Despite currency volatility and macroeconomic uncertainties, Airtel Africa remains committed to investing in digital inclusion, expanding network coverage, and optimizing financial operations to maintain its leadership in Africa’s telecom industry.