October 30, 2026/Cordros Report
Airtel Africa Plc (AIRTELAFRI) released its Q2-27 unaudited results today, reporting a 19.7% y/y growth in EPS to USD0.06 (Q2-26: USD0.05), bringing H1-27 EPS to USD0.10 (+23.3% y/y). Earnings performance was underpinned by strong revenue growth (+25.7% y/y) and a 144bps y/y expansion in EBITDA margin to 50.4%, reflecting sustained growth in data consumption, continued customer additions and ongoing benefits from the group’s cost efficiency initiatives. The company declared an interim dividend of USD0.03 (NGN41.73, using an exchange rate of NGN1,346.15/USD), representing a dividend yield of 0.7% based on the last trading price of NGN6,300.00 per share (as of 30 October).
AIRTELAFRI’s revenue increased by 25.7% y/y in Q2-27 (H1-27: +28.2% y/y) driven by broad based growth across voice (+15.7% y/y | 33.4% of total revenue), data (+34.2% y/y | 41.7% of total revenue), mobile money (+31.3% y/y | 22.2% of total revenue), and other revenue (+6.6% y/y | 6.4% of total revenue) segments. Data remained the key growth driver, supported by a larger customer base (+15.0% y/y to 89.9 million | Q2-27 net adds of 2.6 million), higher data ARPU (+15.8% y/y to USD3.10), and a 480bps y/y increase in smartphone penetration to 51.6%, with smartphone data usage per customer reaching 13.3GB per month in H1-27 (H1-26: 10.1GB). Growth in the voice segment reflected continued customer additions (+11.6% y/y to 193.9 million, with 4.9 million net adds in Q2-27) and a modest increase in voice ARPU (+3.3% y/y to USD1.10). Overall ARPU grew by 12.2% y/y to USD3.40 (H1-27: +15.0% y/y to USD3.40).
Meanwhile, mobile money revenue rose by 31.3% y/y (H1-27: +34.8% y/y), supported by a 22.4% y/y increase in the customer base to 60.9 million (Q2-27 net adds of 4.4 million) and a 42.1% y/y growth in total value processed to USD68.60 billion. Growth was broad based across the key revenue streams, with wallet services, payments and transfers, and financial services expanding by 30.9% y/y, 38.2% y/y, and 71.1% y/y, respectively, reflecting continued user engagement and deeper monetisation of the mobile money ecosystem.
On regional performance, Nigeria’s OpCo revenue grew by 40.2% y/y (H1-27: +45.0% y/y) supported by growth across voice (+33.2% y/y | 34.8% of revenue), data (+46.5% y/y | 54.7% of revenue), mobile money (+199.0% y/y | 1.2% of revenue), and other services (+28.5% y/y | 9.5% of revenue). The performance in Nigeria reflects (1) customer base growth (+15.1% y/y to 61.7 million | Q2-27 net adds of 1.61 million), (2) higher ARPU (+22.6% y/y to USD2.80) and (3) the appreciation of the naira from a weighted average of NGN1,553.00/USD in H1-26 to NGN1,360.00/USD in H1-27.
East Africa revenue grew by 22.3% y/y (H1-27: +24.8% y/y) driven by growth across voice (+13.0% y/y), data (+30.9% y/y) and mobile money (+27.1% y/y), partly offset by an 11.2% y/y decline in other revenue. The OpCo’s performance was driven by an increase in customer base (+8.0% y/y to 88.80 million | Q2-27 net adds of 2.35 million), higher ARPU (+12.2% y/y to USD3.50), and the appreciation of the Zambian kwacha.
In Francophone Africa, revenue increased by 19.5% y/y (H1-27: +19.6% y/y) primarily driven by growth in data (+26.0% y/y) and mobile money (+40.2% y/y), alongside contributions from voice (+5.2% y/y) and other revenue (+0.8% y/y). Performance was driven by customer base expansion (+14.3% y/y to 43.40 million | Q2-27 net adds of 0.95 million), while ARPU expanded by 3.7% to USD4.10.
EBITDA grew by 29.4% y/y (H1-27: +32.8% y/y), leading to a 144bps y/y increase in EBITDA margin to 50.4% (H1-27: +172bps y/y to 50.3%), as revenue growth (+25.7% y/y) outpaced the 21.2% y/y rise in expenses. Notably, EBITDA margin improved in Nigeria (+106bps y/y to 57.6%) and East Africa (+57bps y/y to 54.6%), while Francophone Africa declined by 57bps y/y to 43.4%. The group margin also improved from 50.1% in Q1-27, although higher fuel costs weighed on sequential margins in Nigeria and Francophone Africa.
Further down, operating profit grew by 28.5% y/y to USD659.00 million, after USD19.00 million of exceptional costs relating to the listing of Airtel Money. Total finance costs rose by 59.0% y/y to USD208.00 million (H1-27: +57.1% y/y to USD477.00 million, including the USD37.00 million exceptional charge booked in Q1-27), primarily reflecting lower derivative and foreign exchange gains (Q2-27: USD8.00 million vs. Q2-26: USD68.00 million).
Overall, AIRTELAFRI reported a profit before tax of USD454.00 million (+18.5% y/y) and a profit after tax of USD254.00 million (+15.9% y/y). For H1-27, PBT grew by 24.2% y/y to USD814.00 million and PAT by 20.5% y/y to USD452.00 million.
Comment: AIRTELAFRI delivered a strong Q2-27, with operating performance supported by sustained customer additions, rising data demand and further gains from its cost efficiency programme, even as fuel costs rose. We note, however, that earnings growth trailed operating growth, as higher finance costs, lower foreign exchange gains and listing related exceptional costs weighed on the bottom line. Looking ahead, we expect operating momentum to remain robust, underpinned by structural growth in data demand, increasing smartphone penetration and the continued expansion of Airtel Money following its listing, although elevated finance costs and fuel prices remain the key risks to earnings. Our estimates are under review.
