Airtel Africa Q1 profit rises 27% YoY to USD 198 million
New Delhi, July 23
Airtel Africa reported a 27 per cent rise in profit after tax to USD 198 million for the first quarter ended June 30, 2026, driven by higher operating profit, the company said on Thursday.
The company's profit after tax improved from USD 156 million in the corresponding period last year.
Airtel Africa said the higher profit was driven by improved operating performance, partially offset by USD 6 million in derivative and foreign exchange losses during the quarter, compared with USD 22 million in derivative and foreign exchange gains in the prior period.
It stated, "Profit after tax of $198m improved from $156m in the prior period".
The company added that profit after tax was also impacted by the recognition of an exceptional finance cost of USD 37 million following an in-principle settlement reached during the quarter in respect of a commercial dispute in one of the Group's subsidiaries.
Consolidated revenue for the quarter stood at USD 1,853 million, up 31.0 per cent in reported currency, reflecting 21.1 per cent constant currency growth and macroeconomic tailwinds supporting currency appreciation.
Mobile services revenue grew 19.1 per cent in constant currency, while mobile money revenue increased 25.8 per cent. Within mobile services, voice revenue rose 11.2 per cent and data revenue grew 27.2 per cent in constant currency.
Constant currency EBITDA increased 24.4 per cent, while reported currency EBITDA rose 36.6 per cent to USD 928 million. EBITDA margin improved to 50.1 per cent, an increase of 206 basis points year-on-year, reflecting the company's ongoing cost optimisation programme despite recent energy cost inflation arising from geopolitical developments.
Basic earnings per share (EPS) increased to 4.4 cents from 3.4 cents a year earlier. EPS before exceptional items rose to 5.4 cents from 3.4 cents.
Commenting on the performance, Airtel Africa said it delivered a strong operating performance with accelerating customer base growth across all segments. The total customer base increased 11.6 per cent to 189 million, while data customers grew 15.5 per cent to 87.3 million. The company said data usage per customer increased from 7.8 GB to 10.6 GB per month over the past year, resulting in a 56.3 per cent increase in data traffic across its network.
During the quarter, Airtel Africa also accelerated network investments, with capital expenditure rising to USD 389 million from USD 121 million in the prior period. The company added more than 920 sites during the quarter and expanded its fibre network to 82,100 km.
— ANI
Reader Comments
Interesting numbers, but as an investor, I'm cautious. The EBITDA margin improvement to 50.1% is great, but the capital expenditure jumped from USD 121 million to USD 389 million. That's a huge increase. Are they over-investing just to chase growth? Need to watch the return on that capex.
Data users growing 15.5% and data usage per customer up from 7.8 GB to 10.6 GB per month? That's the real story! Digital India influence spreading globally 👏. Bharti Airtel's African operations are clearly benefiting from the same data boom we see here. 56.3% increase in data traffic is massive.
Honestly, while profits are good, I hope Airtel Africa is also focusing on affordable connectivity in the regions they operate. Many African countries still have high data costs relative to income. 10.6 GB per month is good progress but we need to see more digital inclusion, not just corporate profits.
Solid quarter overall. Voice revenue growing 11.2% while data grows 27.2% is exactly the trend we expect. But I find the "macroeconomic tailwinds supporting currency appreciation" line interesting. In many African markets, currency volatility is a real risk. They should hedge better.
Happy to see an Indian company succeeding globally! Airtel's expansion in Africa is a great example of 'Make in India' for the world. 189 million customers is no joke. And that USD 37 million settlement - glad they resolved the dispute professionally. Profit up, customers up, network expanding. What
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