Airtel Africa said higher Nigerian fuel prices cut into its mobile-services margin in the quarter ended Sept. 30, even as the group’s margin reached a record.
The company said fuel prices in Nigeria had doubled since its 2027 financial year began, amid geopolitical developments. The pressure accumulated during the first half and was fully reflected in the latest quarter. Nigeria mobile-services underlying EBITDA margin fell to 57.5% from 58.8% in the previous quarter, a decline of about 130 basis points. For the half year, the segment’s margin was 58.2%, up 181 basis points from a year earlier.
The group’s margin moved in the opposite direction. Airtel Africa reported a consolidated underlying EBITDA margin of 50.4% in the second quarter, compared with 50.1% in the first quarter. The company said the latest figure was a record and 144 basis points above the same period a year earlier. Its half-year margin stood at 50.3%, up 172 basis points year over year. Airtel Africa credited cost-efficiency measures and scale benefits with supporting the overall result.
Nigeria’s mobile-services business generated $1.008 billion in revenue and $586 million in underlying EBITDA during the six months ended Sept. 30. For the group, revenue totaled $3.823 billion and underlying EBITDA was $1.921 billion over the period.
Sunil Taldar, Airtel Africa’s chief executive officer, said future margins would remain affected by economic conditions and fuel costs. “Looking ahead, margin performance will continue to be influenced by the macroeconomic environment, including its impact on fuel costs,” he said in the results.
The energy costs facing telecom operators can be substantial. The Associated Press reported May 2 that diesel powers most of Africa’s roughly 500,000 telecom towers and that energy can account for as much as 60% of operating costs at off-grid sites.
Airtel Africa’s half-year results showed second-quarter profit after tax rose 15.9% to $254 million; read our earlier earnings coverage for more. The company’s financial calendar lists Jan. 29, 2027, for its next quarterly results.
