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Airtel Africa Plc (AIRTELAFRI) released its unaudited Q2 2025 financial results, showing a mixed performance amidst currency depreciation challenges.
Key Highlights:
– Earnings Per Share (EPS) declined to USD0.64 from USD3.08 in Q2 2024
– Group revenue dropped 2.6% year-on-year to USD1.21 billion
– Subscriber base grew 6.1% year-on-year to 156.60 million
– Average Revenue Per User (ARPU) fell 10.3% year-on-year to USD2.60
Operational Bright Spots:
– Revenue growth in constant currency rose 20.8% year-on-year
– Strong performance in Nigeria (+37.9% year-on-year) and East Africa (+18.5% year-on-year)
– Data revenue grew 1.4% year-on-year
– Mobile money income increased 13.5% year-on-year
Regional Performance:
– Nigeria: Revenue declined 33.2% year-on-year due to currency depreciation
– East Africa: Revenue grew 8.6% year-on-year driven by data and other revenue segments
– Francophone Africa: Revenue rose 7.4% year-on-year
Challenges:
– Currency depreciation, particularly in Nigeria
– Exceptional derivative and foreign exchange loss of USD109.49 million
– Total expenses increased 3.0% year-on-year
Analyst Insights: (Cordros securities)
“Airtel Africa’s strong operational performance was significantly impacted by sustained currency pressures,” said Cordros Research. “However, we remain optimistic about the company’s earnings outlook, driven by customer growth, effective cost management, and mobile money expansion.”
Next Steps:
Airtel Africa’s management will likely focus on mitigating currency risks, driving data growth, and expanding mobile money services to maintain profitability.
Stock Performance:
Airtel Africa’s shares will likely react to the mixed results, with investors weighing the company’s growth prospects against currency challenges.
