Airtel Africa Q1 Results: Revenue Growth and Margin Gains
Airtel Africa delivered a strong start to the year, with higher revenue, EBITDA growth and improved profitability. The results also highlight the impact of network investment on future cash generation.
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Airtel Africa reported a strong first quarter, delivering double-digit growth in revenue and earnings while continuing to invest heavily in its network infrastructure. Although higher capital expenditure reduced operating free cash flow, the underlying operational performance remained robust.
What Happened?
Airtel Africa reported first-quarter revenue of US$1,853 million, an increase of 31.0% in reported currency and 21.1% on a constant currency basis, highlighting strong underlying demand across its markets.
EBITDA rose to US$928 million, with the EBITDA margin improving to 50.1% from 48.0%, reflecting improved operating efficiency. Operating profit increased 40.7% to US$627 million, while profit after tax rose 27.0% to US$198 million.
Basic earnings per share increased to 4.4 US cents. Net cash generated from operating activities climbed 38.3% to US$786 million, demonstrating continued cash generation despite a challenging operating environment.
Capital expenditure increased to US$389 million as the company continued investing in network expansion and capacity. As a result, operating free cash flow declined slightly to US$539 million from US$558 million in the prior year.
Key Takeaway: Airtel Africa delivered strong underlying growth in revenue, profitability and operating cash flow during the quarter. While increased investment weighed on free cash flow, improving margins and robust operational performance suggest the company continues to prioritise long-term growth alongside disciplined capital allocation.
