Airtel Africa Reports 31% Revenue Growth in Q1 2026 with Customer Base Reaching 189 Million and EBITDA Margin at 50.1%

Robust Revenue Growth Across Segments Led by Nigeria Expansion

Airtel Africa achieved strong revenue growth across all segments, with reported currency revenue up 31.0% to $1,853 million and constant currency growth of 21.1%. Nigeria led with 29.8% constant currency revenue growth, driven by tariff adjustments implemented in Q4 2025. East Africa and Francophone Africa contributed 17.8% and 18.0% constant currency growth respectively. Currency appreciation in most markets boosted reported currency results beyond constant currency figures.

Mobile services revenue reached $1,528 million, up 28.2% reported and 19.1% constant currency, underscoring core telecom resilience. Voice revenue grew 11.2% constant currency to $640 million, while data revenue surged 27.2% constant currency to $750 million, reflecting increased digital adoption. Mobile money revenue rose 25.8% constant currency to $404 million, supported by Airtel Money’s expanding customer base and engagement, diversifying revenue streams across markets.

Data Traffic and Smartphone Penetration Drive Increased Service Usage

Data consumption accelerated sharply with total network data traffic up 56.3% year-on-year. Smartphone penetration increased 5.2 percentage points to 51.0%, signaling deeper digitalisation. Average data usage per customer rose from 7.8 GB to 10.6 GB monthly, reflecting both smartphone adoption and heightened digital engagement.

Regionally, Nigeria led with 56.1% smartphone penetration and 14.9 GB average monthly data usage. East Africa reported 48.1% penetration and 11.9 GB usage. The company’s network investments—adding over 920 sites and expanding fibre to 82,100 kilometres—aim to support sustained data growth and customer demand.

Airtel Money Platform Surpasses $245 Billion Annualised Processed Value Amid Financial Inclusion Gains

Airtel Money’s annualised total processed value jumped 51.5% to over $245 billion, with its customer base growing 23.3% to 56.5 million. Mobile money revenue rose 25.8% constant currency to $404 million, with ARPU increasing 3.5% to $2.4, reflecting scale and monetisation improvements.

The company announced London as the preferred listing venue for Airtel Money’s IPO in 2026, subject to regulatory approval, aiming to access a broad international investor base and unlock long-term value from Africa’s leading fintech platform. This move aligns with growing mobile financial services demand amid limited traditional banking penetration in sub-Saharan Africa.

EBITDA Margin Expands to 50.1% Despite Rising Energy Costs

EBITDA margin increased 206 basis points year-on-year to 50.1%, with reported currency EBITDA up 36.6% to $928 million and constant currency EBITDA growing 24.4%. Margin expansion was driven by successful cost efficiency initiatives offsetting inflationary pressures from rising energy costs. Management anticipates continued energy cost headwinds but remains committed to cost discipline.

Mobile services EBITDA rose 37.0% reported currency with margins improving 323 basis points to 50.1%. Mobile money EBITDA margins declined 363 basis points to 49.1%, mainly due to intra-group agreement renegotiations, with no impact on consolidated margins. Sequentially, EBITDA margins slightly decreased from 50.3% in Q4 2026 to 50.1% in Q1 2027, reflecting higher energy expenses.

Profit After Tax Rises 27% Despite Exceptional Costs and FX Losses

Profit after tax increased 27.0% to $198 million from $156 million, tempered by a $37 million exceptional finance cost related to a commercial dispute settlement and $6 million in derivative and foreign exchange losses versus prior period gains. Excluding these, EPS before exceptional items grew 57.0% from 3.4 cents to 5.4 cents.

Operating profit rose 40.7% to $627 million, driven by EBITDA growth. Total finance costs increased to $269 million from $173 million, with $37 million exceptional costs included. Excluding exceptional and FX impacts, finance costs rose due to higher interest on lease liabilities from accelerated site rollout. Weighted average interest rate improved to 10.1% from 12.9%. Basic EPS increased 27.3% to 4.4 cents, below adjusted EPS of 5.4 cents excluding exceptional items.

Accelerated Capex Enhances Network and Growth Prospects

Capital expenditure surged to $389 million in Q1 2026 from $121 million previously, reflecting proactive network deployment ahead of demand. Over 920 new sites were added—the highest first-quarter rollout ever—and fibre network expanded to 82,100 kilometres, strengthening capacity and coverage to support future growth and customer experience.

Despite a 3.5% decline in operating free cash flow to $539 million due to increased capex, management views this as a strategic trade-off to sustain momentum and growth. Improved leverage ratios—declining to 1.7x from 2.2x and lease-adjusted leverage to 0.5x from 0.9x—provide financial flexibility to maintain elevated investment while preserving balance sheet strength.

Leverage Improves as EBITDA Growth Outpaces Debt

Leverage improved significantly with net debt stable at $5,739 million versus $5,494 million prior period, while EBITDA grew 36.6% reported currency. Leverage ratio fell from 2.2x to 1.7x and lease-adjusted leverage from 0.9x to 0.5x, enhancing capacity to fund growth initiatives including capex acceleration and Airtel Money’s London listing.

Net cash from operating activities increased 38.3% to $786 million. Return on capital employed rose 515 basis points to 24.5%, indicating efficient capital deployment exceeding cost of capital. These metrics demonstrate Airtel Africa’s ability to balance growth investment with financial discipline.

Nigeria Leads with Strong Growth Fueled by Tariff Changes and Digital Uptake

Nigeria, the largest revenue market, posted 29.4% constant currency revenue growth to $498 million, driven by tariff adjustments and operational momentum. Customer base expanded 12.0%, ARPU increased 16.5%, voice revenue grew 23.0%, and data revenue surged 38.0%. Smartphone penetration reached 56.1% with 14.9 GB average monthly data usage.

EBITDA rose 36.5% constant currency to $292 million with margins expanding 305 basis points to 58.8%, the highest among regions. Operating free cash flow increased 12.5% to $164 million. The Nigerian Communications Commission confirmed renewal of the 900MHz spectrum licence for $37 million with a ten-year term, removing spectrum uncertainty and supporting future investment.

East Africa Shows Stable Growth Amid Currency Volatility

East Africa (Kenya, Malawi, Rwanda, Tanzania, Uganda, Zambia) reported 14.4% constant currency revenue growth to $607 million, with customer base up 9.3% and ARPU rising 5.3%. Voice revenue increased 8.0%, data revenue grew 22.5%, supported by 16.8% data customer growth and 5.3% ARPU increase. Smartphone penetration reached 48.1% with 11.9 GB average data usage.

EBITDA grew 20.1% constant currency to $295 million, with margins up 252 basis points to 48.7%. Operating free cash flow declined 15.8% due to higher capex. Reported currency growth outpaced constant currency due to Zambian kwacha appreciation, highlighting regional currency volatility risks and opportunities. Digital adoption remains a key growth driver despite macroeconomic challenges.

Share Buyback Program Initiated Demonstrating Financial Strength and Shareholder Focus

On 22 May 2026, Airtel Africa launched a share buyback program to repurchase up to 1% of issued share capital, reflecting strong balance sheet and commitment to shareholders. An agreement with Barclays Capital Securities Limited enables on-market purchases up to $110 million, including a non-discretionary component of $60 million and discretionary up to $50 million, ending no later than 27 November 2026. By 30 June 2026, approximately 10.2 million shares were bought for $46.6 million.

The buyback signals confidence in strategic direction and financial health, designed to complement growth investments. All repurchased shares will be cancelled, reducing share count and boosting EPS. This capital allocation strategy balances growth investment, balance sheet strength, and shareholder returns. Board changes in July 2026, including Gopal Vittal as non-executive chair and Shravin Bharti Mittal as deputy chair, coincided with ongoing buyback execution.

Strategic Outlook: London Chosen for Airtel Money IPO

Choosing London as Airtel Money’s preferred IPO venue marks a strategic milestone to unlock fintech platform value. The listing will provide access to international investors and enable independent capital raising to fuel expansion across Africa. Subject to regulatory approval, this separation offers investors direct exposure to one of Africa’s leading fintech platforms while maintaining Airtel Africa’s core telecom operations. Management’s confidence underscores Airtel Money’s strong growth and profitability prospects.

Investors should watch key factors including capex execution and its impact on growth, near-term EBITDA margin effects from energy costs and cost management, progress of Airtel Money’s London IPO, geopolitical impacts on currencies and energy prices, and sustaining operating leverage as digital adoption matures. Airtel Africa’s Q1 results demonstrate strong operational momentum and financial improvement amid emerging market risks.