What Airtel Africa (AAF) Said on Its Q2 Earnings Call

Key Points

• Airtel Africa delivered strong first-half growth: Constant-currency revenue rose 20.8% to $3.8 billion and EBITDA increased 23.5% to $1.92 billion, with the EBITDA margin expanding to 50.3% despite elevated fuel costs.
• Data and mobile money led operating momentum: Data revenue grew 28%, customer numbers reached 194 million, and mobile money customers increased 22.4% to more than 60 million. Airtel Africa retained a 77.85% stake after completing the Airtel Money IPO.
• The company is increasing investment while returning capital: First-half capital investment rose to $657 million, focused on network expansion, fiber, 5G and data centers, while shareholders received a 9.2% higher interim dividend and nearly $110 million through buybacks.

Airtel Africa LON: AAF reported strong first-half growth for the period ended Sept. 30, 2026, as rising data usage, customer additions and mobile money adoption supported revenue and margin expansion despite higher fuel costs.

Chief Executive Officer Sunil Taldar said the company generated nearly 21% constant-currency revenue growth during the six-month period, while maintaining an EBITDA margin above 50%. The company also completed the initial public offering of Airtel Money, retaining an approximately 78% interest in the digital financial-services business.

Revenue and earnings growth

Revenue increased 20.8% in constant currency and 28.2% in reported currency to $3.8 billion, according to Chief Financial Officer Kamal Dua. Reported growth benefited from appreciation in the Nigerian naira and Zambian kwacha.

EBITDA rose 23.5% in constant currency and 32.8% in reported currency to $1.92 billion. The group’s EBITDA margin expanded by 144 basis points year over year, reaching 50.3% for the first half. In the second quarter, the margin reached a record 50.4%, up 35 basis points sequentially.

Dua said the performance was achieved despite elevated fuel costs linked to geopolitical developments. He said the company had absorbed about 90% of the impact from fuel prices prevailing during the second quarter. Had fuel prices remained at fourth-quarter levels, the EBITDA margin would have been approximately 1.5% to 2% higher, he said.

Pre-exceptional earnings per share rose to $0.117 from $0.083 a year earlier. Excluding foreign-exchange gains in both periods, underlying EPS increased from $0.069 to $0.118, Dua said.

• Voice revenue rose 7.1% in constant currency.
• Data revenue increased 28%.
• Mobile money revenue rose 25.8%.
• Customer numbers grew 11.6% to 194 million.
• Data customers increased 15%, while smartphone penetration reached 51.6%.

Data and mobile money drive operating momentum

Taldar said Airtel Africa’s network now serves more than 100 million smartphone users. Average smartphone usage exceeded 13 gigabytes per month, supported by customer migration to smartphones, video and social-media consumption, and the company’s network investments.

Mobile services revenue rose 18.9% in constant currency. Taldar attributed the performance to customer growth, data adoption, increased usage and the company’s “more-for-more” pricing approach. Group ARPU increased 10.7%, while data revenue grew 28%.

The mobile money customer base grew 22.4%, with the company reporting more than 60 million mobile money customers. Transaction value rose 37%, bringing annualized transaction value in the second quarter to $275 billion. Taldar said the business continues to expand services and partnerships aimed at increasing financial inclusion across its markets.

Airtel Money’s IPO provided an external valuation reference and greater visibility into the business, Taldar said. Airtel Africa retained a 77.85% stake following the offering, while Airtel Money continues to use Airtel Africa’s telecom platforms, distribution network, customer access and shared services under arm’s-length arrangements.

Regional performance and Nigeria outlook

Nigeria delivered 27% constant-currency revenue growth, supported by customer growth of more than 15% and a 12.7% increase in ARPU. Taldar said the company’s expanded capital investment helped it capture demand in the country, while cost efficiencies and operating leverage supported margins despite a twofold increase in fuel costs over the year.

Addressing questions about a sequential slowdown in data ARPU, Taldar said newer data users tend to enter at lower consumption and ARPU levels. He also cited the company’s pricing structure, under which higher-volume users pay less revenue per gigabyte, and a temporary disruption to airtime-loan services as the company transitioned to newly onboarded partners following regulatory instructions.

Taldar said Nigeria remains competitive but that Airtel Africa has not seen a material increase in competitive intensity or evidence of a price war. He added that the company continues to engage regulators regarding potential tariff adjustments.

In East Africa, revenue increased more than 18% in constant currency, accelerating to 18.6% in the second quarter. The region’s first-half EBITDA margin rose to 53.6%. In the Francophone region, revenue grew more than 19% in constant currency, with second-quarter growth exceeding 20%. Mobile money revenue in that region grew more than 40% in constant currency, Taldar said.

Investment, cash flow and shareholder returns

Airtel Africa increased capital investment to $657 million in the first half from $318 million a year earlier, focusing primarily on coverage, capacity, fiber deployment and 5G rollout. The company also invested in home broadband and data centers. Its full-year capital-expenditure guidance remained $1.1 billion.

Free cash flow was $280 million, compared with $368 million in the prior-year period, reflecting a $357 million increase in capital-expenditure payments. CapEx payments totaled $713 million and included a 900-band license renewal in Nigeria and 5G spectrum acquisition in Kenya.

The company reported lease-adjusted leverage of about 0.5 times, with more than 95% of debt denominated in local currencies. Dua said Airtel Africa’s cost of debt declined by approximately 230 basis points year over year, aided by debt portfolio management and lower interest rates in several markets.

The board declared an interim dividend of $0.031 per share, up 9.2% year over year. Airtel Africa also returned nearly $110 million to shareholders through buybacks during the period. Taldar said the company had completed about 67% of its previously announced 1% buyback program and expected to resume purchases for the remaining portion after restrictions associated with the Airtel Money IPO and closed periods.

Looking ahead, Taldar said Airtel Africa intends to continue prioritizing investment in network capacity, distribution and adjacent opportunities including home broadband, data centers and enterprise connectivity. The company has begun construction on data centers in Lagos and Kenya, with planned capacities of about 38 megawatts and 44 megawatts, respectively, and has acquired land for a planned 9-megawatt facility in the Democratic Republic of Congo.

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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