Airtel Africa profit rises 27% to $198m, picks London for mobile-money IPO listing

Airtel Africa has begun its first quarter 2026 financial year on a strong footing, posting a 27 percent increase in its profit after tax while identifying London as the preferred venue for the initial public offering (IPO) of its fast-growing Airtel Money business, a move that could unlock the value of one of Africa’s largest fintech platforms.

The telecommunications giant reported profit after tax of $198 million for the quarter ended June 30, 2026, up from $156 million a year earlier, as higher revenues, improved operating margins, and stronger customer growth offset rising finance costs and a one-off commercial settlement. Revenue surged 31 percent to $1.85 billion, while operating profit rose 40.7 percent to $627 million, reflecting continued demand for data services and digital financial products across its 14 African markets.

The earnings provide further evidence that Airtel Africa is benefiting from improving macroeconomic conditions across several of its markets, particularly Nigeria, while simultaneously positioning its fintech business as a standalone investment proposition.

Sunil Taldar, the company’s chief executive officer, said the company had entered a new phase of growth, confirming that London has been selected as the preferred listing venue for Airtel Money, subject to regulatory approvals.

“We believe a London listing will provide access to a broad international investor base and support our ambition to unlock the long-term value of one of Africa’s leading fintech platforms,” Taldar said.

The announcement represents the clearest indication yet that Airtel Africa intends to separate part of the valuation of its mobile money business from its traditional telecommunications operations. Investors have long argued that Africa’s rapidly expanding digital financial services businesses command significantly higher valuation multiples than conventional telecom operators.

The proposed listing follows years of rapid expansion by Airtel Money, which has become one of the continent’s largest mobile financial services platforms.

During the quarter, Airtel Money processed transactions at an annualised value exceeding $245 billion, up 51.5 percent, while its customer base expanded 23.3 percent to 56.5 million users. Mobile money revenue increased 38.9 percent to $404 million, accounting for nearly 22 percent of group revenue, highlighting how financial services have become a major earnings contributor rather than simply a complementary business.

The growth was driven by increased wallet usage, merchant payments, transfers, lending, and broader adoption of digital financial services across East Africa and Francophone Africa, while Nigeria continued to record rapid expansion from a relatively small base.

Nigeria remains the biggest earnings catalyst
Nigeria continued to be Airtel Africa’s strongest-performing market during the quarter.

Revenue from Nigeria increased 50.4 percent in reported currency to $501 million, while constant currency growth stood at 29.8 percent, reflecting both stronger operating performance and appreciation of the naira compared with the corresponding period last year.

Data remained the principal growth engine. In Nigeria, data revenue jumped 59.9 percent, while voice revenue increased 42.6 percent. EBITDA from the Nigerian business surged 58.4 percent to $293 million, lifting EBITDA margin to 58.6 percent, one of the highest across the group’s operating regions.

Management attributed the strong Nigerian performance to continued customer acquisition, increased smartphone penetration, stronger data usage and the full-year effect of tariff adjustments introduced in late 2025.

Smartphone penetration in Nigeria rose to 56.1 percent, while average monthly smartphone data usage climbed to 14.9GB, underscoring the rapid migration of subscribers towards higher-value digital services.

Data consumption increasingly drives growth
Across the group, Airtel Africa Q1FY27 operating metrics point to a business increasingly dependent on data rather than traditional voice services.

Its total customer base expanded 11.6 percent to 189 million, while data customers increased 15.5 percent to 87.3 million.

Average monthly data consumption per customer rose from 7.8GB to 10.6GB, driving a 56.3 percent increase in network traffic.

Data revenue, consequently, grew 36.5 percent, significantly outperforming voice revenue growth of 20.1 percent, reinforcing the structural shift in customer behaviour across African telecom markets. Smartphone penetration reached 51 percent, crossing the halfway mark for the first time across Airtel Africa’s operations.

The figures illustrate how rising smartphone adoption continues to underpin both telecommunications revenue and the expansion of Airtel’s digital financial ecosystem.

Investing ahead of demand

Unlike many operators that have moderated capital spending, Airtel Africa significantly accelerated investment during the quarter.

Capital expenditure more than tripled to $389 million, compared with $121 million a year earlier, as the company deployed over 920 new network sites and expanded its fibre infrastructure to 82,100 kilometres.

Management said the investment was deliberately brought forward to improve network quality, increase capacity, and prepare for future demand as digital adoption accelerates across Africa.

The aggressive investment programme reduced operating free cash flow by 3.5 percent despite stronger earnings, reflecting management’s decision to prioritise long-term network expansion over short-term cash generation.

Balance sheet strengthens

Despite higher investment spending, Airtel Africa’s balance sheet continued to improve.

Net leverage declined from 2.2 times to 1.7 times EBITDA, while lease-adjusted leverage improved from 0.9 times to 0.5 times, supported by stronger earnings generation.

The board also continued its shareholder return programme, repurchasing approximately 10.2 million shares for $46.6 million under its ongoing buyback initiative during the quarter.

IPO could redefine Airtel Africa’s valuation
The proposed London listing of Airtel Money could become the group’s most significant strategic milestone in years.

While Airtel Africa’s telecom operations continue to generate stable cash flows, the fintech business is expanding at a materially faster pace than the core network business. Mobile money revenue grew 38.9 percent, compared with 28.2 percent growth in mobile services, while processed transaction values increased at an even faster rate.

Listing Airtel Money separately could allow investors to value the fintech platform independently from the capital-intensive telecom business, potentially narrowing the valuation discount often applied to integrated telecom operators.