Airtel Africa has posted its strongest financial results since its dual listing on the London and Lagos stock exchanges in 2019, after reporting a 29.5% jump in annual revenue to US$6.42 billion and a record net profit of US$813 million.
The telecom giant’s earnings profile is increasingly being shaped by data services and mobile money, signalling a major transition away from traditional voice revenue streams.
Key highlights from the financial year include:
• Underlying EBITDA climbed 37.2% to US$3.16 billion, with margins widening by 280 basis points to a record 49.3%, despite operating expenses rising 22.7%.
• Fourth-quarter EBITDA margin stood at 50.3%, marking the first time the group has crossed the 50% threshold.
• Data revenue overtook voice revenue for the first time since the company listed publicly.
Operating profit surged 45.1% to US$2.12 billion, while profit before tax more than doubled to US$1.42 billion from US$661 million recorded previously. Net profit rose sharply from US$328 million to US$813 million.
The group also benefited from derivative and foreign exchange gains amounting to US$127 million during FY2026, compared to losses of US$179 million in FY2025, resulting in a positive swing of US$306 million at pre-tax level.
The results for the year ended March 31, 2026 reflect a significant rebound after two financially difficult years caused largely by the devaluation of Nigeria’s naira, which had previously weighed down reported earnings despite continued growth in constant currency terms.
Following the stabilisation of the naira and a 47.5% rise in Nigeria’s constant-currency revenue, aided in part by tariff revisions, Airtel Africa’s latest results now better mirror the scale of its operational expansion across its 14 African markets.
Chief Executive Officer Sunil Taldar attributed the strong performance to disciplined execution and continued digital investment.
“This year delivered a very strong performance across both operating and financial metrics,” he said, citing a 22% increase in smartphone users to 91 million and close to 50% growth in data traffic as evidence that the company’s digital strategy is paying off.
Data Emerges as Airtel Africa’s Largest Revenue Stream
Data revenue grew 40.3% to US$2.53 billion and now contributes 39.4% of total group revenue, up from 36.4% the previous year.
Voice revenue rose 18% to US$2.32 billion, though its overall contribution to revenue continues to shrink.
The shift has been driven by rapid 4G network expansion, now covering 98.5% of Airtel Africa’s sites, alongside a 4.7 percentage-point increase in smartphone penetration, which reached 49.5%.
Average customer data usage rose from 7.0GB to 8.9GB per month, representing a 27% increase. Management believes the growth runway remains substantial given smartphone penetration remains below 50% across most of its markets.
Meanwhile, Airtel Money revenue climbed 36.3% to US$1.36 billion, with the customer base surpassing 54 million users after growing 21.3%.
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Annualised transaction value processed through Airtel Money exceeded US$215 billion in the fourth quarter, compared to just US$23.6 billion at the time of listing in FY2019.
The number of customers transacting through the Airtel Money app rose 74% year-on-year, underscoring deeper engagement within the digital ecosystem rather than simple customer acquisition growth.
Balance Sheet Strengthens as Investments Accelerate
The group’s leverage ratio improved to 1.8x net debt to EBITDA from 2.3x previously, while lease-adjusted leverage declined to 0.5x from 1.0x.
Excluding lease obligations, net debt fell to US$1.37 billion from US$1.70 billion, offering a clearer picture of the company’s improving financial position compared to the broader reported net debt figure of US$5.59 billion.
Capital expenditure increased 31.9% to US$884 million as the company rolled out 3,250 new network sites and expanded its fibre footprint by 3,200 kilometres to 81,900 kilometres.
Management has projected approximately US$1.1 billion in capital expenditure for FY2027 as Airtel Africa intensifies investments in broadband infrastructure and data centres.
Among the flagship projects is a 44MW hyperscale data centre currently under construction at Tatu City near Nairobi, expected to become East Africa’s largest data centre once complete.
The board has proposed a final dividend of 4.26 US cents per share, bringing the total annual dividend to 7.10 US cents, representing a 9.2% increase year-on-year.
Operating free cash flow rose 39.4% to US$2.28 billion, extending a consistent growth streak since the company’s public listing. From US$702 million in FY2019, Airtel Africa has now generated more than US$12 billion in cumulative free cash flow over eight years, reflecting the growing maturity of its infrastructure-driven business model across Africa’s fast-expanding telecoms landscape.
