Airtel Africa Returns to Profitability with $661 Million Pre-Tax Profit

Airtel Africa has reported a significant financial turnaround for the fiscal year ending March 31, 2025, posting a pre-tax profit of $661 million. This marks a remarkable recovery from a pre-tax loss of $63 million in the previous year, representing a 1,147.8% year-on-year improvement.

Key Financial Highlights:

• Revenue: Total revenue for the period stood at $4.96 billion, reflecting a 21.1% increase in constant currency terms. However, due to currency devaluation, the reported revenue declined slightly by 0.5%.

• Profit After Tax: The company achieved a profit after tax of $328 million, a significant turnaround from a loss of $89 million in the prior year.
• Earnings Per Share (EPS): Basic EPS improved to 6.0 cents, compared to a loss per share of 4.4 cents in the previous year.

Factors Contributing to the Turnaround:

• Reduction in Finance Costs: Net finance costs decreased by 51.7% to $822 million, down from $1.703 billion in 2024. This decline was primarily due to a reduction in derivative and foreign exchange losses, which had significantly impacted the previous year’s performance.
• Operational Efficiency: The company implemented effective operational strategies, including tariff adjustments in key markets like Nigeria, which contributed to the revenue growth despite the challenges posed by currency fluctuations.

Strategic Initiatives:

Looking ahead, Airtel Africa is planning an initial public offering (IPO) for its mobile money business, Airtel Money, in 2026. This move is expected to unlock value for shareholders and capitalize on the growing demand for digital financial services across the continent.

Conclusion:

Airtel Africa’s impressive financial performance in FY 2025 underscores the company’s resilience and strategic focus in navigating the complexities of the African telecommunications market. The significant reduction in finance costs and the return to profitability position the company well for future growth and expansion in the digital services sector.