Half Year 2026 Airtel Africa PLC Earnings Call Transcript
Key Points
- Airtel Africa PLC (AAFRF) reported a strong constant currency revenue growth of 24.5% for the first half of the year, with reported currency growth of almost 26%.
- EBITDA margins improved to 48.5%, with a sequential increase to 49% in the second quarter, reflecting sustained business momentum.
- The company declared a 9.2% growth in the dividend, driven by strong free cash flow generation and an enhanced capital structure.
- Airtel Africa PLC (AAFRF) has seen a 35% growth in transaction value for its mobile money services, reaching over $193 billion annualized.
- The company has a strong capital structure with lease-adjusted leverage down to 0.8 times and 95% of debt in local currency, allowing for continued network investment and shareholder returns.
- Voice usage in Nigeria has seen a double-digit decline, raising concerns about the future growth trajectory in this segment.
- The company faces challenges in the Nigerian mobile money market due to strong competition from established fintech operators and banks.
- There is uncertainty regarding future CapEx levels, as the company has not provided guidance for the next fiscal year, leaving analysts unsure about long-term investment plans.
- The renegotiation of intragroup agreements has impacted mobile money EBITDA margins, with a reported drop of nearly 200 basis points in the second quarter.
- Despite strong overall performance, the company acknowledges that the mobile money business in Nigeria will take time to mature due to the competitive and entrenched market.
Good afternoon, ladies and gentlemen, and welcome to the Airtel Africa half year results for the year ended March 2026. (Operator Instructions) Please note that this call is being recorded.
I would now like to turn the conference over to Chief Executive Officer, Sunil Taldar. Please go ahead, sir.
Thank you. Hello, everyone, and a very good evening, good morning to you all, and thank you once again for joining us today. I have with me Kamal, our CFO; and Alastair, who is Head of our Investor Relations. Let me give you some brief highlights over the last six-months, before running through our strategic and operational achievements and how this has translated into a strong set of results we have reported today.
After that, I will hand over to Kamal to run through the financials. We have seen our performance over the last six-months supported by a much more stable macroeconomic and currency backdrop. This has been a very welcome development, and I believe enables us to
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