Airtel Africa profit surges on data and mobile money growth
Airtel Africa posted a 32% rise in first-quarter pretax profit to $360 million, driven by rapid expansion in data and mobile money services that pushed EBITDA margins above 50% and cemented its status as Nigeria's most valuable listed company.
Airtel Africa recorded a profit before tax of $360 million for the quarter ended 30 June 2026, up from $273 million a year earlier. Profit after tax rose to $198 million as currency-reported revenue surged 31% to $1.85 billion. Underlying earnings, which strip out exceptional items and foreign exchange impacts, grew even faster, with earnings per share reaching 5.4 cents compared to 3.0 cents previously.
The growth was broadly based but led by higher-value digital services. Data revenue increased 36.5% to $750 million, fueled by a 56.3% jump in data traffic and smartphone penetration crossing the 50% threshold. Mobile money revenue grew 38.9% to $434 million, with annualized transaction values exceeding $245 billion. The customer base expanded to 189 million mobile users and 56.5 million mobile money users.
This top-line expansion translated into significant operating leverage. EBITDA climbed 36.6% to $928 million, pushing the margin up to 50.1% from 48.0%. Management attributed this resilience to cost efficiency programmes that offset rising energy and inflationary pressures. Meanwhile, the balance sheet strengthened notably; net leverage fell to 1.7x from 2.2x, and lease-adjusted leverage dropped to 0.5x from 0.9x.
To sustain this trajectory, capital expenditure was brought forward, jumping to $389 million from $121 million. Finance costs rose to $269 million, reflecting a $37 million exceptional charge tied to a commercial dispute settlement and higher foreign exchange losses. Despite this, operating profit advanced 40.7% to $627 million.
"We have started this year with another pleasing performance," said Chief Executive Officer Sunil Taldar. "Our accelerated investment programme remains on track, with investment brought forward into Q1 as we proactively invest ahead of demand to sustain our strong operating momentum and capture the growth opportunities presented by Africa’s ongoing digital transformation."
The equity market has already priced in this operational momentum. Airtel Africa shares closed flat on 22 July 2026 at N5,801.40, but have surged 155.6% year-to-date. The rally makes the telecom operator the most valuable company on the Nigerian Exchange with a market capitalisation of N21.8 trillion. The company has also begun returning capital, repurchasing 10.2 million shares for $46.6 million during the quarter.
