July 24, 2026/CSL Report
Financial Highlights:
- Revenue: +31.0% y/y to US$1.9bn
- Cost of Sales: +19.2% y/y to US$329m
- OPEX: +28.3% y/y to US$598m
- EBITDA: +36.7% y/y to US$928m
- Operating Profit: +40.6% y/y to US$627m
- Profit After Tax: +26.9% y/y to US$198m
Airtel Africa started FY 2027 on a strong note, with Revenue rising by 31.0% year-on-year (y/y) to US$1.9 billion from US$1.4 billion in Q1 2026. On a quarter-on-quarter (q/q) basis, Revenue increased by 6.0% from US$1.7 billion in Q4 2026. The strong performance was driven by broad-based growth across its operating markets, reflecting the successful execution of its customer-centric growth strategy and sustained demand for mobile connectivity and digital services.
The company delivered robust growth across all major business segments during the quarter. Data Revenue increased by 36.5% y/y to US$750 million from US$549 million, supported by a 15.5% increase in the data subscriber base to 87.3 million, highlighting continued demand for mobile internet services. Mobile Money Revenue grew by 38.9% y/y to US$404 million, up from US$290 million, while the mobile money customer base expanded by 23.3% to 56.5 million users. Voice Revenue also recorded solid growth, rising 20.1% y/y to US$640 million from US$533 million in Q1 2026. Overall, Airtel Africa’s total customer base increased by 11.6% y/y to 189.0 million, supported by continued investments in network expansion and improved service availability across its operating markets.
Stock Rating: Buy
Direct Network Operating Costs increased by 19.2% y/y to US$329 million in Q1 2027 from US$276 million in Q1 2026, while Operating Expenses rose by 28.3% y/y to US$598 million from US$466 million. Despite higher operating costs, Airtel Africa delivered strong earnings growth, with EBITDA increasing by 36.7% y/y to US$928 million from US$679 million, supported by robust revenue growth. Consequently, the EBITDA margin
improved by 210 basis points to 50.1%.
Depreciation and Amortisation Expenses rose by 29.2% y/y to US$301 million, but this was more than offset by the strong growth in operating earnings, resulting in Operating Profit increasing by 40.6% y/y to US$627 million, compared with US$446 million in Q1 2026.
Net Finance Costs rose by 55.5% y/y to US$269 million from US$173 million in the prior year. This increase was primarily driven by higher finance costs, which outweighed the 53.6% y/y growth in finance income.
Consequently, Pre-tax Profit grew by 31.9% y/y to US$360 million from US$273 million in Q1 2026, while Net Profit increased by 26.9% y/y to US$198 million from US$156 million in the corresponding period of the previous year.
We maintain a target price of 7,125.54/s, with a BUY recommendation on the stock. The current market price stands at N5,801.40.
Click here to download full report: AIRTEL AFRICA Q1 2027 Quick Take