Airtel Africa Q4 profit at $80 million on revenue growth, lower costs

Lower finance costs and steady revenue growth lifted Airtel Africa's Q4 profit to $80 million and helped it post a full-year net profit of $328 million in FY25

A sustained rise in revenue and lower finance costs helped Airtel Africa to post $80 million consolidated net profit in the January to March quarter of the financial year 2024-25 (FY25). This was up from a $91 million loss in Q4FY24.

 

As a result, the telecom operator saw its annual net profit rise to $328 million in FY25, up from a $89 million loss in FY24.

 

Quarterly finance costs fell 52 per cent in Q4 to $221 million, down from $465 million in Q4FY24. Total finance costs for FY25 stood at $822 million, down 51 per cent from the $1.7 billion in FY24. It was impacted by $179 million of derivative and foreign exchange losses as a result of the Nigerian naira’s devaluation in the first half of FY25, which has been partially offset, the company said.

 

 

Airtel Africa reported a 17.8 per cent rise in revenue to $1.31 billion, up from $ 1.1 billion in Q4FY24. The rise in revenue accelerated from a 2.42 per cent rise in Q3, and two straight quarters of revenue contraction. Strong execution and the tariff adjustments in Nigeria contributed to a further quarter of accelerating growth, with Q4 revenue growth of 23.2 per cent in constant currency and 17.8 per cent in reported currency as currency headwinds eased. 

 

The earnings before interest, taxes, depreciation, and amortisation (Ebitda) was recorded at $623 million, up 19.8 per cent from the $520 million in the same quarter of the previous year. Underlying Ebitda declined by 5.1 percent in reported currency to $2.3 million with margins of 46.5 per cent, compared to 48.8 per cent in the prior year, impacted by increased fuel prices and the lower contribution of Nigeria to the Group.

 

With operations in 14 sub-Saharan Africa countries, Airtel Africa is among the largest telecom providers in the continent. The total customer base in the latest quarter expanded by 8.7 percent to 166.1 million, as mobile data and mobile money service penetration continued to climb. The quarter saw a 14.1 percent surge in data customers to 73.4 million, and a 17.3 per cent increase in mobile money customers to 44.6 million.