Airtel Africa launches $110m share buyback to reward investors

By Chukwuma Umeorah

Airtel Africa has commenced a share buyback programme valued at up to $110 million as the telecommunications and mobile money services provider moves to return cash to shareholders amid what it described as continued balance sheet strength and financial flexibility.

The company disclosed in a notice filed on the portal of the Nigerian Exchange Limited (NGX) that the programme would involve the repurchase of up to 1 per cent of its issued share capital as part of its capital allocation policy.

The company further stated that all shares repurchased under the programme would be cancelled as the sole purpose of the exercise is to reduce the company’s capital base. “The sole purpose of the buyback programme is to reduce the capital of the Company. As such, all shares purchased under the buyback programme will be cancelled,” the notice stated.

According to the company, the initiative reflects the board’s confidence in the group’s financial position and its ability to continue investing across its African operations while rewarding shareholders. “The Board’s decision reflects the continued strength of the Group’s balance sheet and its ability to preserve financial flexibility while supporting ongoing investment to capitalise on the compelling growth outlook across the Group’s footprint,” the notice stated.

Airtel Africa said it had entered into an agreement with Barclays Capital Securities Limited to execute the programme through on-market purchases of its ordinary shares, which would subsequently be acquired by the company. The agreement, according to the notice, consists of two parallel elements.

Under the non-discretionary arrangement, Barclays will independently purchase between $50 million and $60 million worth of ordinary shares without influence from the company.

The second component is a discretionary arrangement under which Airtel Africa may instruct Barclays to purchase up to an additional $50 million worth of shares, subject to the provisions of the Market Abuse Regulation. The programme commenced on May 22, 2026, and is expected to run until no later than November 27, 2026, unless terminated earlier in line with the terms of the agreement.

Airtel Africa said further tranches of the programme could be announced later to enable it fulfil its objective of repurchasing up to one per cent of its issued share capital as at the date of the announcement.

The telecommunications company also explained that the purchases would be carried out in line with shareholder approvals, UK listing regulations and market abuse rules. It noted that shareholders had earlier granted the company authority at its annual general meeting held on July 9, 2025, to repurchase a maximum of 366.07 million ordinary shares.

Following the completion of an earlier buyback programme, Airtel Africa said the remaining authority available for repurchases currently stands at 357.04 million ordinary shares. The company further disclosed that Barclays may continue executing the discretionary portion of the buyback autonomously during closed periods under irrevocable and non-discretionary instructions permitted by regulation.

The new buyback announcement comes weeks after Airtel Africa reported strong financial and operational performance for the year ended March 31, 2026 (Q1), supported by growth in data usage, mobile money services and improved profitability across its markets.

According to its audited financial statement, the group recorded a 29.5 per cent increase in revenue to $6.42 billion from $4.96 billion in the previous year, while profit after tax (PAT) rose by 147.4 per cent to $813 million from $328 million. Operating profit rose by 45.1 per cent to $2.12 billion, while underlying EBITDA increased by 37.2 per cent to $3.16 billion, with EBITDA margin improving to 49.3 per cent from 46.5 per cent in the prior year.

Commenting on the performance, Airtel Africa Chief Executive Officer, Sunil Taldar, said, “This year delivered a very strong performance across both operating and financial metrics, reflecting the attractive industry fundamentals and structural growth drivers across our footprint.”

He added that the company recorded its “highest level of customer additions, revenue and EBITDA growth” during the financial year.

The company attributed the performance to strong customer growth, increased smartphone penetration, higher data consumption and tariff adjustments in Nigeria. Its customer base grew by 10.5 per cent to 183.5 million subscribers, while data customers increased by 14.8 per cent to 84.2 million. Smartphone penetration rose to 49.5 per cent from 44.8 per cent in the previous period.

Data revenue, which has become the largest contributor to group revenue, increased by 40.3 per cent to $2.53 billion, while mobile money revenue rose by 36.3 per cent to $1.36 billion. In Nigeria, revenue grew by 52.9 per cent to $1.6 billion, driven largely by data growth and tariff adjustments. Nigerian data revenue rose by 69.8 per cent, while underlying EBITDA margin improved to 57.5 per cent from 49.7 per cent. The group also reported improved leverage metrics, with leverage declining to 1.8x from 2.3x, while lease-adjusted leverage improved to 0.5x from 1.0x.

Capital expenditure for the year rose by 31.9 per cent to $884 million as the company expanded network infrastructure and digital capacity across its operations. Airtel Africa said it rolled out more than 3,250 new sites and expanded its fibre network by about 3,200 kilometres to 81,900 kilometres.

The company also announced a proposed final dividend of 4.26 cents per share, bringing total dividend for the year to 7.1 cents per share, representing a 9.2 per cent increase from the previous year.