Airtel Africa Q1 Profit Grows Multifold To $156 Million

Telecom operator Airtel Africa posted multifold growth in profit after tax to $156 million in the June quarter mainly on account of customer growth, lower capex, and forex gain. The company had posted a profit after tax of $31 million in the same period a year ago.

"Profit after tax of $156 million improved from $31 million in the prior period. The prior period was significantly impacted by derivative and foreign exchange losses, primarily in Nigeria, while the current period benefited from a $22 million gain largely arising from the Central African franc appreciation during the quarter," the company said in a statement on Thursday.

Airtel Africa Chief Executive Officer Sunil Taldar said the acceleration in customer base growth to 9%, and 17.4% growth in data customers to 75.6 million reflect strong on-ground execution and the simplification of customer experience.

"With smartphone penetration at only 45.9%, we see significant headroom to drive further adoption and play a key role in bridging the digital divide. Mobile money remains a cornerstone of our current and future growth proposition. With our customer base approaching 46 million and expanding by over 16 per cent, we see significant potential to further advance financial inclusion through the continued growth of our financial services offering," Taldar said.

The revenue of Airtel Africa increased 22.4% to $1,415 million during the reported quarter from $1,156 million a year ago.

The company said capex of $121 million was lower compared to $147 million in June 2024 quarter driven largely by timing differences.

Airtel Africa has enhanced capex guidance for the full year to be in the range of $725 million and $750 million from $670 million it incurred in fiscal 2025.