Airtel Africa posted a 147.4 per cent jump in net profit last year, compared to 2024, boosted by a notable improvement in turnover, the telecommunications giant reported on Friday.
The revenue of the wireless operator, which in addition to Nigeria, its largest market, operates in thirteen other African countries, enlarged by 29.5 per cent during the period, climbing to $6.4 billion from $5 billion.
|
|
Data revenue, the main income source of the company, drove the growth in topline.
The telco’s mobile money unit also logged a strong performance, recording $1.4 billion in turnover, more than one-third higher than what it reported a year ago, on the back of robust growth in East Africa and Francophone Africa.
|
|
|
|---|
Airtel Africa is planning to spin off its mobile money business from its core telecoms operations, with the initial public offering (IPO) earlier proposed for the unit now put on hold until the second half of this year amid market uncertainties arising from the ongoing Middle East conflict.
The IPO expects to raise between $1.5 billion and $2 billion towards a potential listing on the London Stock Exchange.
In the period under review, operating profit was up by 45.1 per cent at $2.1 billion, while underlying Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) margin stood at 49.3 per cent, compared to 46.5 per cent a year earlier.
Stay Ahead with Premium Times
Follow us on Google News and never miss breaking stories, investigations, and in-depth reporting.
Add as a preferred source on Google
“Adoption of new digital technologies and AI has been pivotal in unlocking growth opportunities and driving efficiencies, with wide-ranging rollouts enhancing customer experience through site-level network optimisation, streamlined onboarding and accelerating the rollout of myAirtel app,” said CEO Sunil Tadar.
READ ALSO: Airtel Africa’s nine-month profit more than doubles as data revenue lifts turnover
“This focused strategy has contributed to a further 22% increase in smartphone customers to 91 million, driving an almost 50% increase in data traffic and, together with another strong Airtel Money performance, supported a step-up in constant-currency revenue growth to 24.0%.”
Profit before tax advanced 114.5 per cent to $1.4 billion, while profit after tax increased to $813 million from $328 million.
Last December, Airtel Africa announced a partnership with SpaceX to introduce Starlink Direct-to-Cell satellite connectivity across the fourteen markets where it operates. The service is expected to enable data for specific apps and text messaging in areas without terrestrial coverage, with future upgrades providing high-speed connectivity through next-generation satellites.
Total assets stood at $14 billion, up from $12 billion one year prior.
Discover more from Premium Times Nigeria
Subscribe to get the latest posts sent to your email.
More News
