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1. Company Snapshot

1.a. Company Description

Airtel Africa Plc, together with its subsidiaries, provides telecommunications and mobile money services to customers in Nigeria, East Africa, and Francophone Africa.It offers prepaid and postpaid wireless voice, international roaming, and fixed line telephone services; data communication services, including 2G, 3G, and 4G; and mobile money services, such as digital wallet payments systems, microloans, savings, and international money transfers.The company also provides messaging, value added, enterprise, and infrastructure sharing services, as well as support services; and sells handsets.


In addition, it is involved in the investment activities.The company was incorporated in 2018 and is based in London, the United Kingdom.Airtel Africa Plc is a subsidiary of Airtel Africa Mauritius Limited.

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1.b. Last Insights on AAF

Airtel Africa's recent momentum is fueled by its estimated fair value of UK£5.81, based on 2 Stage Free Cash Flow to Equity, indicating a potential 46% discount. The company's intrinsic value is bolstered by its position in the FTSE 100, which has climbed to fresh highs despite economic headwinds. As investors navigate uncertain times, Airtel Africa's undervaluation presents an opportunity, with some estimates suggesting it may be trading up to 48.7% below its intrinsic value (Source: UK Market insights).

1.c. Company Highlights

2. Airtel Africa's Strong 9M 2026 Earnings: Growth Momentum Continues

Airtel Africa reported a robust financial performance for the 9 months ended March 2026, with revenues reaching $4.93 billion, representing a 24.6% growth in constant currency. EBITDA grew by 31% to $1.73 billion, driven by the company's refined strategy to capture the growing demand for digital services. Earnings per share (EPS) came in at $0.03601, beating analyst estimates of $0.02969. The company's leverage remains comfortable, with adjusted leverage declining to 0.7x.

Publication Date: Feb -19

📋 Highlights
  • Revenue & EBITDA Growth:: 28.3% reported revenue growth and 36% EBITDA growth YoY, with constant currency adjustments at 24.6% and 31% respectively.
  • Airtel Money Expansion:: Crossed 50 million customers and $200 billion annualized TPV, with 28% revenue growth and >50% EBITDA margins.
  • Starlink Partnership:: Launched D2C SMS/light data via SpaceX Gen1, enhancing rural connectivity and addressing digital divide challenges.
  • Nigeria Performance:: 53% constant currency revenue growth, 19% smartphone growth, and 90% 4G site coverage (up from 85% YoY).
  • Strategic Leverage:: Adjusted leverage at 0.7x, with CFO confirming no further reduction targets (current leverage at 1.9x).

Operational Highlights

The company continued to expand its network, increasing its sites by approximately 2,500 and expanding its fiber network to over 81,500 kilometers. Mobile money services, a key growth driver, saw revenue growth of 28% in constant currency, with Airtel Money crossing the 50 million customer mark and achieving an annualized total process value of over $200 billion.

Regional Performance

Francophone Africa saw constant currency growth accelerate to 18.7%, driven by the company's investments in network expansion and customer experience. Nigeria's constant currency growth accelerated to 53%, fueled by the price adjustment, which provided stability and drove demand. East Africa remained stable, with a 9.5% customer base growth and 19% smartphone growth.

Valuation

With a P/E Ratio of 32.82 and an EV/EBITDA of 7.92, the market appears to be pricing in a significant growth premium. The company's ROE of 20.03% and ROIC of 10.59% indicate a strong return on equity and invested capital, respectively. The Dividend Yield of 1.42% provides a relatively stable income stream. Analysts estimate next year's revenue growth at 16.9%, which may justify the current valuation multiples.

Growth Prospects

The company's focus on digital services, including mobile money and data, is expected to drive continued growth. The partnership with Starlink is also expected to enhance the company's offerings, particularly in rural areas. With a strong track record of execution and a favorable growth outlook, Airtel Africa is well-positioned to continue its growth momentum.

Mobile Money Business

Airtel Money has seen significant growth, with revenue growth of 28% in constant currency. The company is focused on driving app penetration and engagement to accelerate growth. The potential IPO of the mobile money business could provide further upside, although the timing and details remain uncertain.

3. NewsRoom

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FTSE 100 Live: London stocks recover as markets cheer Fed chair nomination

Jan -30

Source: proactiveinvestors.com

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FTSE 100 Live: London stocks recover as markets await Fed chair nomination

Jan -30

Source: proactiveinvestors.com

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FTSE 100 Live: Stocks recover but miners come under pressure as metals retreat

Jan -30

Source: proactiveinvestors.com

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Why The Airtel Africa (LSE:AAF) Story Is Shifting With Fresh Price Target Assumptions

Jan -22

Source:

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UK Stocks Priced Below Estimated Value In January 2026

Jan -06

Source:

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FTSE 100 best performing stocks of 2025

Dec -30

Source:

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Airtel Africa teams up with Starlink to launch direct-to-cell service in 14 markets

Dec -16

Source:

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3 UK Stocks Estimated To Be Undervalued By Up To 49%

Dec -15

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.70%)

6. Segments

Nigeria Mobile Services

Expected Growth: 12.3%

Increasing mobile penetration, growing demand for data services, and expansion of 4G networks are expected to drive Airtel Nigeria's growth. The Nigerian government's efforts to improve digital infrastructure and promote mobile financial services will also contribute to the growth.

East Africa Mobile Services

Expected Growth: 10.3%

Increasing mobile penetration, growing demand for data services, and expansion of 4G networks in Kenya, Tanzania, Uganda, and Rwanda drive growth in East Africa mobile services market.

Francophone Africa Mobile Services

Expected Growth: 7.3%

Growing demand for mobile data and digital services, increasing smartphone penetration, and expansion of 4G networks in Francophone Africa drive the growth of Airtel Africa Plc's mobile services in the region.

Mobile Money

Expected Growth: 12.3%

Increasing mobile penetration, growing demand for digital payments, and expansion into new markets drive Airtel Africa's Mobile Money growth. The service's convenience, security, and accessibility also contribute to its adoption.

Unallocated

Expected Growth: 10.2%

Airtel Africa's unallocated shares, held by the parent company, are expected to drive growth, driven by increasing demand for mobile services, expansion into new markets, and investments in 4G network infrastructure.

7. Detailed Products

Mobile Voice

Airtel Africa's mobile voice service allows customers to make and receive voice calls across the continent.

Mobile Data

Airtel Africa's mobile data service provides customers with fast and reliable internet access on their mobile devices.

Mobile Money

Airtel Africa's mobile money service enables customers to store and manage their money digitally, making transactions convenient and secure.

Enterprise Solutions

Airtel Africa's enterprise solutions provide businesses with customized communication and connectivity solutions to enhance their operations.

Fixed Broadband

Airtel Africa's fixed broadband service provides customers with high-speed internet access in their homes and offices.

Digital TV

Airtel Africa's digital TV service offers customers a range of channels and on-demand content, providing an immersive entertainment experience.

Airtel Business

Airtel Africa's business solutions provide customized communication and connectivity solutions for small, medium, and large enterprises.

8. Airtel Africa Plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Airtel Africa Plc faces moderate threat from substitutes, as customers have limited alternatives for mobile network services. However, the presence of other mobile network operators and internet service providers poses some threat.

Bargaining Power Of Customers

Airtel Africa Plc's customers have low bargaining power due to the lack of alternative mobile network services and the company's strong brand presence in the market.

Bargaining Power Of Suppliers

Airtel Africa Plc's suppliers, such as network equipment providers, have moderate bargaining power due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants is low for Airtel Africa Plc, as entering the mobile network services market requires significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry is high in the mobile network services market, with multiple players competing for market share and customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 65.52%
Debt Cost 3.95%
Equity Weight 34.48%
Equity Cost 7.55%
WACC 5.19%
Leverage 190.05%

11. Quality Control: Airtel Africa Plc passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Telia Company

A-Score: 6.2/10

Value: 4.3

Growth: 2.6

Quality: 4.4

Yield: 8.8

Momentum: 8.0

Volatility: 9.3

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Itissalat Al-Maghrib

A-Score: 6.1/10

Value: 3.6

Growth: 2.3

Quality: 6.9

Yield: 6.2

Momentum: 9.0

Volatility: 8.3

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United Internet

A-Score: 5.8/10

Value: 6.4

Growth: 4.4

Quality: 3.1

Yield: 7.5

Momentum: 9.0

Volatility: 4.3

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Airtel Africa

A-Score: 5.3/10

Value: 3.5

Growth: 4.8

Quality: 5.5

Yield: 3.8

Momentum: 10.0

Volatility: 4.3

1-Year Total Return ->

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Elisa

A-Score: 5.0/10

Value: 4.0

Growth: 4.0

Quality: 6.9

Yield: 8.1

Momentum: 2.0

Volatility: 4.7

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1&1

A-Score: 4.5/10

Value: 5.5

Growth: 3.4

Quality: 4.2

Yield: 0.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.48$

Current Price

3.48$

Potential

-0.00%

Expected Cash-Flows