Airtel Africa plc has posted a strong financial performance for the first quarter of its 2027 financial year, with revenue rising 31 percent to $1.85 billion as the telecom operator continued to benefit from growth in mobile data, digital payments and an expanding subscriber base across its African markets.
The company’s results for the quarter ended June 30, 2026, show that revenue increased from the previous year’s comparable period, supported by strong performance across Nigeria, East Africa and Francophone Africa. On a constant currency basis, Airtel Africa’s revenue grew 21.1 percent, reflecting continued underlying growth despite currency movements across its operating markets.
Airtel Africa’s operating profit increased 40.7 percent to $627 million during the quarter, compared with $446 million recorded in the first quarter of the previous financial year. Profit after tax climbed 27 percent to $198 million, while basic earnings per share (EPS) increased 27.3 percent to 4.4 US cents. The company’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 36.6 percent to $928 million, translating into an EBITDA margin of 50.1 percent.
Operating cash flow also improved significantly, with net cash generated from operations increasing 38.3 percent to $786 million, providing the group with additional financial flexibility to support network expansion and digital investments.
The telecommunications group continued to expand its customer base, with total subscribers growing 11.6 percent to 189 million across its 14 African markets. Growth was particularly strong in the data segment, where the number of data users increased 15.5 percent to 87.3 million.
The rise in digital adoption boosted key service categories, with mobile money revenue increasing 25.8 percent while data revenue grew 27.2 percent in constant currency terms. Airtel Africa said increased smartphone penetration, rising data consumption and continued investment in digital financial services remained key drivers of growth.
Nigeria remained the strongest contributor to Airtel Africa’s expansion, recording reported currency revenue growth of 52.9 percent and constant currency growth of 47.5 percent. The company attributed the performance to increased data usage and pricing adjustments implemented to reflect changing operating conditions in the market.
East Africa delivered reported revenue growth of 24 percent and constant currency growth of 17.8 percent, supported partly by appreciation of currencies including the Tanzanian shilling, Ugandan shilling and Zambian kwacha. Francophone Africa recorded reported revenue growth of 21.5 percent and constant currency growth of 17.1 percent, helped by currency appreciation in several markets using the CFA franc.
To support rising demand for connectivity, Airtel Africa significantly increased capital expenditure during the quarter. Capital expenditure rose to $389 million from $121 million in the same period last year as the company accelerated investments in fibre infrastructure and network expansion. The group added 920 new sites during the quarter, strengthening coverage and capacity as mobile data consumption continues to rise across Africa.
Airtel Money IPO Targets London Stock Exchange Listing
Airtel Africa confirmed that its fintech subsidiary, Airtel Money, will pursue a listing on the London Stock Exchange (LSE), with the flotation expected in the second half of 2026. The planned initial public offering (IPO) is part of Airtel Africa’s strategy to unlock the standalone value of its rapidly growing mobile money business and attract international investors.
The company had initially targeted an earlier timeline but pushed the transaction into the second half of the year due to increased global energy and logistics costs linked to geopolitical tensions.
The Airtel Money business is estimated to generate about $1.35 billion in annual revenue and operates with an EBITDA margin of approximately 50.8 percent, highlighting its profitability and growth potential. The IPO, led by Citi, is expected to value the fintech unit at about $10 billion and could raise approximately $1.5 billion, potentially making it one of the largest London listings in recent years.
Airtel Africa Warns of Margin Pressure
Despite the strong quarterly performance, Airtel Africa warned that profitability margins could face short-term pressure due to rising energy prices and higher logistics costs. The company said geopolitical uncertainty and global supply chain disruptions could increase operating expenses, affecting near-term core margins.
However, Airtel Africa reported continued improvement in its balance sheet, with lease-adjusted leverage improving to 0.5 times. The company said its strong cash generation and lower debt levels position it well to continue investing in network expansion and digital services.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.