…AIRTELAFRI’s group revenue declined by 2.6% y/y to USD1.21 billion (H1-25: -9.7% y/y to USD2.37 billion)
…Subscriber base growth of 6.1% y/y to 156.60 million (1.20 million net additions in Q2-25), was offset by currency depreciation, particularly in Nigeria
FRI OCT 25 2024-theGBJournal| Airtel Africa Plc (AIRTELAFRI) reported Q2-25 unaudited financials Friday, reporting an EPS of USD0.64 (vs EPS of USD3.08 in Q2-24), thus bringing the H1-25 EPS to USD0.82 (vs loss per share of USD1.46 in H1-24).
The decline was primarily influenced by the exceptional derivative and foreign exchange loss (USD109.49 million | Q2-24: Nil) arising from further currency depreciation during the period.
AIRTELAFRI’s group revenue declined by 2.6% y/y to USD1.21 billion (H1-25: -9.7% y/y to USD2.37 billion), as subscriber base growth of 6.1% y/y to 156.60 million (1.20 million net additions in Q2-25), was offset by currency depreciation, particularly in Nigeria.
Consequently, the average revenue per user (ARPU) dropped by 10.3% y/y to USD2.60 (H1-25: -13.3% y/y to USD2.60). However, we highlight that revenue grew by 20.8% y/y (H1-25: +19.9% y/y) in constant currency terms, led by strong growth in Nigeria (+37.9% y/y) and East Africa (+18.5% y/y).
Across the group, voice revenue declined by 11.6% y/y (H1-25: -17.9% y/y), accounting for 39.9% of total revenue. This decline was driven by currency depreciation, which offset the 6.1% y/y increase in the subscriber base.
Meanwhile, data revenue grew by 1.4% y/y (H1-25: -7.7% y/y) on the back of a 10.4% y/y growth in data subscriber base and a 30.9% increase in data usage per customer, thus bringing its contribution to total revenue to 35.8%.
In Nigeria, revenue was down by 33.2% y/y (H1-25: -44.3% y/y), with significant reductions across voice (-39.7% y/y), data (-28.6% y/y) and other (-23.0% y/y) revenue segments, all primarily driven by the sustained naira depreciation.
However, in constant currency, total revenue grew by 37.9% y/y (H1-25: +35.6% y/y), reflecting strong demand for data services and a slight uptick in total subscriber growth (+0.2% to 48.70 million) despite the disconnection of subscribers in compliance with NCC directive.
Elsewhere, data usage per customer increased by 36.0% to 8.1GB per month, driven by a 6.2% increase in smartphone penetration, while the data subscriber base expanded by 8.6% y/y to 26.30 million (2.00 million net additions in Q2-25).
Whereas East Africa saw revenue growth of 8.6% y/y (H1-25: +7.5% y/y) in reported currency, driven by increases in data (+16.9% y/y) and other (+27.5% y/y) revenue segments, while voice revenue fell slightly (-0.1% y/y).
In constant currency, revenue surged by 18.5% y/y (H1-25: +19.1% y/y), supported by subscriber growth (+9.0% y/y) and a 28.4% increase in data usage per customer to 5.9GB. Network expansion, particularly in 4G infrastructure, contributed to this performance, with 4G coverage reaching 98.8% and 5G services extended to 986 sites.
Francophone Africa revenue grew by 7.4% y/y in Q2-25 (H1-25: +5.2% y/y), underpinned by the rise in voice (+0.1% y/y) and data (+21.2% y/y) revenue segments amid a decline in other (-4.8% y/y) revenues.
In constant currency, revenue grew by 7.1% y/y (H1-25: +5.3% y/y). The mild growth in revenue was due to high inflation in key markets, which negatively impacted consumer spending. However, the total subscriber base grew by 9.0% y/y in the region to 33.60 million (Q2-25: net addition of 0.70 million), supported by the expansion of both network coverage and distribution infrastructure.
Income from mobile money grew by 13.5% y/y, contributing 20.1% to overall revenue (H1-25: +11.9% y/y, 19.6% of total revenue). This was driven by an expanded Airtel Money distribution network, the addition of 117,000 new agents in H1-25, and a 13.4% increase in customers to 41.50 million (Q2-25: net addition of 2.00 million).
Total expenses rose slightly by 3.0% y/y (H1-25: -3.1% y/y), driven primarily by currency depreciation, especially in Nigeria. As a result, EBITDA margin declined by 334bps y/y to 46.4% (H1-25: -378bps y/y to 45.8%). Notably, EBITDA margin declined across all regions during the period—Nigeria (-504bps y/y to 49.4%), East Africa (-232bps y/y to 47.9%), and Francophone Africa (-418bps y/y to 39.4%).
Further down, total finance costs increased by 40.2% y/y to USD267.02 million (H1-25: -39.5% y/y to USD528.38 million), primarily due to the USD109.49 million exceptional derivative and foreign exchange losses reported during the period.
Consequently, AIRTELAFRI reported a profit before tax (PBT) of USD103.95 million (-55.3% y/y) and a profit after tax (PAT) of USD48.44 million (-65.0% y/y) in the quarter.
Airtel Africa’s strong operational performance, driven by customer growth, expanded network coverage, and increased mobile money penetration, was significantly impacted by sustained currency pressures, particularly in Nigeria, resulting in declines in both revenue and profit for the quarter.
However, Cordros Research say they expect the company to maintain we expect profitability due to continued customer growth, effective cost management, lower FX exposure, enhanced data capacity, and further expansion in mobile money penetration.
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