Airtel Africa Q3 results: Net profit rises to $133 million, revenue up 2%

Appreciation in key currencies give exceptional gain of $94 million to company

A sudden appreciation in several African currencies, such as the Nigerian naira and Tanzanian shilling, allowed telecom provider Airtel Africa to post a $133 million net profit in the third quarter (October-December) of FY25 on Wednesday. Attributable to the owners of the company, this compares to a net loss of $6 million in Q3FY24.

 

It reported a 2.42 per cent rise in revenues to $1.26 billion, up from $1.23 billion in Q3FY24. The rise in revenue was a reversal of the 2.6 and 16.1 per cent declines in revenue announced in the preceding two quarters. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) was recorded at $594 million, 1.98 per cent lower than $606 million in the same quarter of the previous year. Ebitda has been falling due to increased fuel prices and the lower contribution of Nigeria to the Airtel Africa Group.

 

Importantly, profit after tax benefited from an exceptional gain of $94 million as a result of currency changes, the company said. This follows exceptional derivative and foreign exchange losses of $71 million and $80 million due to currency devaluation in Q2 and Q1, respectively.

 

With operations in 14 sub-Saharan African countries, Airtel Africa is among the largest telecommunications providers on the continent. The total customer base in the latest quarter expanded by 7.9 per cent to 163.1 million, as mobile data and mobile money service penetration continued to climb. The quarter saw a 13.8 per cent surge in data customers to 71.4 million and an 18.3 per cent increase in mobile money customers to 44.3 million. Data usage per customer increased by 32.3 per cent to 6.9 GB, with smartphone penetration increasing by 5.2 per cent to reach 44.2 per cent in Q3. Airtel Africa renewed its licence in Kenya and Chad during the quarter.

 

The company has been actively reducing its forex exposure across the group over the past few years to mitigate the impact of any potential future devaluation and has reduced its foreign currency debt exposure by $739 million in the past year, it said. Ninety-two per cent of the debt of its operating company, excluding lease liabilities, is now in local currency, up from 79 per cent a year ago. This, together with continued confidence in the outlook for the business, has enabled the company's board to announce a second share buyback programme, which will return up to $100 million to shareholders.

 

Capital expenditure of $456 million was 7.8 per cent lower compared to the prior period. Meanwhile, its capex guidance for the full year remains at $725 million-$750 million.