October 28, 2025/Cordros Report

Airtel Africa Plc (AIRTELAFRI) released its unaudited Q2-26 financial results today, reporting a remarkable 6.53x y/y growth in EPS to USD0.05, bringing the H1-26 EPS to USD0.08 (+9.08x y/y). The improvement was primarily driven by a 29.1% y/y increase in revenue and a 51.0% reduction in total finance costs. The company declared an interim dividend of USD0.03 (NGN43.68, using an exchange rate of NGN1,456.00/USD), representing a dividend yield of 1.9% based on the last trading price of NGN2,310.50 per share (as of 28 October).

AIRTELAFRI’s group revenue rose by 29.1% y/y in Q2-26 (H1-26: +25.8% y/y), driven by growth across all major segments – voice (+17.2% y/y), data (+40.7% y/y), mobile money (+36.5% y/y), and other services (+12.8% y/y). Data revenue, accounting for 39.1% of total revenue, remained the key driver, benefiting from a higher subscriber base (+18.4% y/y, with a Q2-26 net addition of 2.54 million), a 19.2% y/y increase in data ARPU to USD2.70, increasing smartphone penetration, and a 24.2% rise in data usage per subscriber to 8.2GB per month. Voice revenue growth was supported by a growing subscriber base (+11.0% y/y to 173.82 million, with a Q2-26 net addition of 4.43 million) and a 6.5% y/y increase in voice ARPU to USD1.10. Overall, average revenue per user (ARPU) grew by 19.2% y/y to USD3.10 (H1-26: +11.5% y/y to USD2.90).

In Nigeria, revenue surged by 56.3% y/y (H1-26: +42.5% y/y), with gains across all segments – voice (+38.7% y/y), data (+71.7% y/y), and other services (+55.3% y/y). The growth was driven by a 9.9% y/y increase in the total subscriber base to 53.60 million, continued strong demand for data services, with data usage per subscriber rising by 24.9% y/y to 10.1GB per month, and the full period impact of tariff adjustments.

East Africa revenue grew by 19.1% y/y (H1-26: +18.5% y/y), supported by strong performances in voice (+19.2% y/y), data (+22.7% y/y), and other services (+5.2% y/y). Growth in East Africa was driven by a 10.8% y/y increase in subscribers to 82.30 million and higher data demand, with data usage rising by 25.0% y/y to 7.3GB per subscriber.

In Francophone Africa, revenue increased by 17.7% y/y in Q2-26 (H1-26: +17.7% y/y), driven by growth in voice (+1.5% y/y), data (+39.5% y/y), and other services (+3.2% y/y). The region’s growth was fueled by a 12.8% rise in the subscriber base to 38.0 million and increased data demand, with data usage per subscriber growing by 25.0% y/y to 6.4GB per month.

Mobile money revenue rose by 36.5% y/y (H1-26: +33.9% y/y), driven by the expansion of Airtel Money’s distribution network, a 20.0% y/y increase in customers to 49.8 million, and a 42.9% y/y increase in transaction value to USD48.30 billion.

Meanwhile, EBITDA margin expanded by 256bps y/y to 49.0% (H1-26: +268bps y/y to 48.5%) driven by strong revenue growth from higher data demand and subscriber growth, while expenses grew at a slower pace of 23.4% y/y. Across operating regions, EBITDA margin increased in Nigeria (+751bps y/y to 56.9%, H1-26: +760bps y/y to 56.3%), East Africa (+229bps y/y to 50.2%, H1-26: +69bps y/y to 48.3%), and Francophone Africa (+15bps y/y to 39.6%, H1-26: +124bps y/y to 39.5%).

Total finance costs fell by 51.0% y/y to USD130.72 million (H1-26: -42.6% y/y to USD300.51 million), primarily due to a 17.0% y/y decline in finance costs and the absence of exceptional derivative and foreign exchange losses during the period (Q2-25: USD109.41 million).

Ultimately, AIRTELAFRI reported a 268.6% y/y increase in profit before tax of USD383.17 million and a profit after tax of USD219.32 million (+352.8% y/y). For H1-26, the company posted a 269.3% y/y growth in PBT to USD655.76 million and a PAT of USD375.51 million (+375.3% y/y).
 
Comment: AIRTELAFRI delivered exceptional Q2-26 results, marking a full recovery from the foreign exchange pressures of the prior period. The strong performance reflects higher subscriber growth, robust demand for data services, and further support from tariff adjustments in Nigeria. We expect this momentum to continue for the remainder of the fiscal year, driven by sustained customer acquisition and incessant demand for data services. Our estimates are under review.