Nigeria contributed 24% of Airtel Africa’s revenue in Q1 2025 as data demand spurs 269% profit surge

Airtel Africa has kicked off its 2025/2026 financial year with a stellar performance, reporting a 269% year-over-year (YoY) surge in pre-tax profit for the first quarter ended June 30, 2025.  According to its financial report, the telecom giant achieved a total revenue of $273 million in the quarter.

This remarkable growth, coupled with significant network expansion, underscores the telecom company’s robust strategy in navigating Africa’s dynamic markets. The company also rolled out over 2,300 new sites and extended its fibre network by 2,700 kilometres, bringing the total to over 79,600 kilometres. 

Airtel Africa’s financial results for Q1 2025/2026 reflect a powerful rebound. The company posted a pre-tax profit of $273 million, a 269% increase from the same period last year. 

This figure accounts for 41% of the group’s total pre-tax profit for the entire previous financial year, signalling a strong trajectory for 2025. Post-tax profit soared by 408% to $156 million, nearly half of the prior year’s full-year earnings. Revenue climbed to $1.415 billion, up 24.9% in constant currency and 22.4% in reported terms, driven by tariff adjustments in Nigeria and strong growth in Francophone Africa.

EBITDA grew by 29.8% to $679 million, with margins expanding from 45.3% to 48.0%. This growth reflects Airtel’s cost-efficiency measures and a stable operating environment. 

Commenting on the company’s improved performance Sunil Taldar, CEO of Airtel Africa, said, “We are very pleased with the strong growth in our operating and financial performance. The scale of this growth reflects sustained demand for our services and the strength of our business model.”

Network expansion drives connectivity

Airtel Africa’s infrastructure investments are a cornerstone of its success. The company deployed over 2,300 new sites, bringing the total to 37,579, and expanded its fibre network by 2,700 kilometres to exceed 79,600 kilometres.

These efforts boosted 4G coverage to 74.7%, up 3.4% from last year, thus addressing the rising demand for high-speed internet. With 169.4 million customers, each tower now supports about 4,500 users, aligning with global averages but highlighting the need for further investment to meet Africa’s growing data needs.

Data revenue surged by 38.1%, driven by a 17.4% increase in data customers to 75.6 million and a 47.4% spike in data consumption. 

Smartphone penetration rose to 45.9%, fuelling digital adoption. Airtel’s focus on network expansion aligns with its mission to bridge the digital divide, particularly in underserved rural and urban areas. However, capital expenditure (capex) for the quarter dropped 18% to $121 million due to timing differences, though the company reaffirmed its full-year capex guidance of $725 million to $750 million.

Airtel Africa’s mobile money services continue to thrive. Mobile money revenue grew by 30.3%, with 45.8 million customers, up 16.1% YoY. The annualised transaction value reached $162 billion, a 35% increase, supported by an 11.3% rise in average revenue per user (ARPU). The “My Airtel App,” integrating telecom and mobile wallet functions, saw a 92% increase in active users, showcasing the company’s digital innovation.

The launch of Airtel Spam Alert, an AI-powered solution, enhances customer trust and network safety. “Our strategy prioritises customer experience, leveraging technology to lower barriers to smartphone adoption,” Taldar noted. With smartphone penetration at just 45.9%, Airtel sees significant growth potential in digital and financial inclusion.

Nigeria is Airtel’s growth powerhouse

Nigeria remains Airtel Africa’s largest market, contributing 24% of total revenue. 

The country saw a 48.9% revenue growth in constant currency, driven by tariff adjustments approved by the Nigerian Communications Commission. These adjustments, prompted by naira devaluation, helped offset economic challenges. 

Despite its success, Airtel Africa faces challenges. Currency volatility in Nigeria, Malawi, and Zambia, coupled with rising energy costs, has prompted cautious spending. The company’s capex has declined for three consecutive years, raising concerns about sustaining network quality amid growing demand. 

Airtel has mitigated risks through debt localisation, with 95% of its operating company debt now in local currencies, up from 86% last year. This reduces exposure to foreign exchange fluctuations. The company also returned $16.9 million to shareholders via a share buyback programme, reflecting confidence in its financial health.

Airtel Africa’s Q1 2025 results signal a robust start to the fiscal year. With a focus on network expansion, digital innovation, and financial inclusion, the company is well-positioned to capitalise on Africa’s growing demand for connectivity. However, sustained investment is crucial to maintain network quality and meet rising data needs. 

As Taldar emphasised, “Africa offers a huge opportunity, and we are making the right investments to ensure we are ready for the AI wave and data consumption growth.”