Airtel Africa (LON:AAF) management highlighted what it described as strong operating and financial momentum during its call to discuss nine-month 2026 results, pointing to broad-based growth across its footprint and continued investment to expand network capacity and digital services.
Revenue and EBITDA growth driven by scale and demand
Chief Executive Officer Sunil Taldar said the group delivered reported currency revenue growth of 28.3% and nearly 36% growth in EBITDA over the last year. On a constant currency basis, revenues rose 24.6% and EBITDA increased 31%, which management framed as a better reflection of underlying performance.
Regional performance: Nigeria acceleration, Francophone recovery, East Africa competitive pressure
Management called out accelerating growth in multiple regions. Francophone Africa constant currency growth increased to 18.7% in quarter three from 15.8% in quarter two, which Taldar attributed to investments and strategic focus driving a multi-year recovery.
In Nigeria, constant currency growth accelerated to 53%, with management citing strong demand and tariff adjustments. In the Q&A, Taldar said the price adjustment was “very badly needed” for industry stability and has supported higher investment levels. He added that while voice consumption has seen some “pirating,” data consumption has accelerated, and customer acceptance of the pricing changes has been positive. He noted that roughly 40% to 50% of last year’s growth in Nigeria came from tariff effects, and said the company would have more visibility after reporting the next quarter, when the pricing impact is fully overlapped.
In East Africa, constant currency growth of 16.1% was described as robust, though management acknowledged evolving dynamics. Responding to an analyst question, Taldar said underlying metrics remained stable—citing customer base growth of about 9.5% and smartphone growth of about 19%—but noted “significantly higher competitive intensity” in some markets and temporary regulatory-related disruptions in quarter three tied to sector-wide security issues. He said the issues were temporary and the company expected improvement as actions taken begin to show results.
Data remains core growth driver; smartphone penetration still below 50%
Airtel Africa’s mobile services business recorded constant currency revenue growth of 23.6% in quarter three, which management attributed to customer growth, usage expansion, and higher ARPU. The company reported total customers of 179.4 million, with data customers rising nearly 15% to 81.8 million.
Smartphone penetration increased by nearly four percentage points to 48.1%, which management characterized as evidence of remaining runway for adoption. Data traffic rose nearly 47%, and data usage per customer reached 9.3 GB per month in quarter three, up 25.6% year-over-year and 8% versus quarter two. Data ARPU increased 16.2% in the quarter, contributing to data revenue growth of 35.5% in constant currency terms. Taldar said data revenues are now the largest component of group revenue.
Airtel Money crosses scale milestones; IPO preparations continue
Management emphasized the growth of Airtel Money as a second major engine. Taldar said the platform surpassed 50 million customers, ending quarter three with 52 million. Annualized total processed value exceeded $200 billion, reaching more than $210 billion, up 36%.
In quarter three, Airtel Money revenue grew 28% in constant currency, and the business delivered EBITDA margins of over 50%, which management described as “best-in-class financials.” Executives also pointed to the gap between total GSM customers and Airtel Money users—52 million out of nearly 180 million—as support for continued growth potential.
On the IPO, Taldar reiterated that preparations are progressing and said the listing remains on track for the first half of 2026. In response to a question about venue selection, management said it continues to evaluate major listing venues and is close to finalizing a preferred location, with further updates to follow in due course.
Management also discussed increasing segmentation and product focus within Airtel Money, describing how the platform is now organized across wallet services, financial services, and merchant services. Executives said the business has historically been driven by cash-in/cash-out and peer-to-peer transfers, but efforts are increasingly geared toward driving app penetration and expanding use cases to increase engagement.
Investment, cost efficiency, and partnerships: network build-out and Starlink
Taldar said Airtel Africa continues to invest to improve customer experience, reporting approximately 2,500 additional sites and an expanded fiber network of more than 81,500 kilometers. He said the company has accelerated capital investment to capture long-term growth opportunities.
Management reiterated full-year CapEx guidance of between $875 and $900 (as stated on the call). For the nine-month period, CapEx increased more than 30% to $603 million, and the company said it remains on track to meet guidance.
Executives also pointed to a cost efficiency program, launched around six to seven quarters ago, as a contributor to margin improvement. In response to questions on margins, management cited three drivers behind a roughly 240 basis point improvement on a constant currency basis: a more stable macro environment (including stable fuel prices), faster revenue growth, and continued cost initiatives aimed at eliminating waste without cutting growth-enabling spending.
On connectivity initiatives, Airtel Africa discussed a partnership with Starlink for direct-to-cell services across its 14 markets. Management said the offering would initially support “Gen 1” services—SMS and light data—allowing customers with existing 4G and 5G phones to remain connected when outside terrestrial coverage, subject to regulatory approvals. Taldar described the service as complementary to network expansion rather than a replacement for terrestrial investment.
Additionally, management said network sharing agreements with MTN (Nigeria and Uganda) and Vodacom (Tanzania and the DRC) are intended to reduce duplicated infrastructure investment, improve resilience, and support coverage expansion. Executives said some benefits have already begun to accrue, with more details expected in future quarters.
Other topics addressed in the Q&A included Nigeria VAT changes—management estimated input VAT claimability would lift Nigeria margins by roughly 1.5% beginning in quarter four—and tower lease renewals in Nigeria, with management stating the ATC contract was renewed in September 2024 for a 12-year term and the IHS contract extended through 2031. The company also reported 4G population coverage of about 82% in Nigeria.
Closing the call, Taldar reiterated a focus on customer experience and said the company is positioning itself to sustain growth through continued investment, digital adoption, and financial inclusion initiatives.
About Airtel Africa (LON:AAF)
Airtel Africa is a leading provider of telecommunications and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa.
Airtel Africa offers an integrated suite of telecommunications solutions to its subscribers, including mobile voice and data services as well as mobile money services both nationally and internationally.
The Group aims to continue providing a simple and intuitive customer experience through streamlined customer journeys.
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