Axian Telecom’s Q1 Performance Bolstered by Tanzania, Madagascar Operations
The Group’s overall revenue saw a significant uplift, increasing by 15.9% year-on-year to reach $373.7 million. This impressive growth was largely spearheaded by stellar performances within its African markets.
Axian Telecom has released its Q1 2025 financial results, showcasing a notable surge in revenue, primarily fueled by its operations in Tanzania and Madagascar. However, a closer look reveals a more complex picture, with rising operating costs and foreign exchange headwinds impacting overall profitability. Techafricia News dives into the details, analysing what these results mean for Axian’s strategy and the broader African telecom landscape.
Strong Revenue Performance Driven by African Markets
The Group’s overall revenue saw a significant uplift, increasing by 15.9% year-on-year to reach $373.7 million. This impressive growth was largely spearheaded by stellar performances within its African markets. Tanzania emerged as a standout, contributing a substantial 26.6% increase in revenue, closely followed by Madagascar with a healthy 16.6% rise. Axian Telecom operates across nine key African markets, including Tanzania, Madagascar, Togo, Uganda, Democratic Republic of the Congo, Senegal, Réunion, Mayotte, and the Comoros, underscoring its deep commitment to the continent’s digital transformation.
Remarkable Subscriber Growth and Digital Inclusion
Subscriber numbers tell a compelling story of expanding reach and digital inclusion. Axian reported a remarkable 4.8 million increase in revenue-generating subscribers (RGS) over the twelve-month period ending March 31, 2025, bringing the total to 40.8 million. This growth was predominantly driven by its Tanzanian operations, which added 3.3 million RGS, representing a 20.3% increase in revenue. Madagascar and Togo also saw considerable RGS increases of 1.2 million (11.9%) and 0.3 million (6.5%) respectively. Active data users across the Group climbed by 1.3 million to 12.7 million, with Senegal and Tanzania leading this charge. Mobile Financial Services (MFS) users also surged by 2.8 million to 15.7 million, largely fueled by Tanzania’s impressive 2.1 million increase (27.0%), alongside significant contributions from Madagascar and Togo.
Expanding Infrastructure and Network Optimization
Infrastructure development remains a cornerstone of Axian’s strategy. The company increased its Owned Towers by 709 and Shared Towers by 759 during the twelve-month period, including 150 Owned Towers from the Telma Comoros acquisition. Notably, Tanzania saw an increase of 233 Owned Towers, and operations in Madagascar and Uganda also expanded their tower portfolios. The strategic conversion of Owned Towers to Shared Towers, particularly in Tanzania, demonstrates a focus on optimizing infrastructure utilization and potentially attracting more tenants, despite a slight decrease in the overall Tenancy Ratio.
Navigating Operational Challenges and Forex Headwinds
However, the period was not without its hurdles. Total operating costs increased by $50.2 million year-on-year, driven by various factors. Specific challenges included increased device sales costs in Madagascar and Tanzania, higher technology operation costs due to network expansion and maintenance (especially in Madagascar and Tanzania, impacted by a severe cyclone season), and rising commissions to sales agents. Regulatory costs also saw a significant uptick, particularly in Togo and Madagascar, where new revenue-based levies were imposed.
Furthermore, negative foreign exchange translation impacts, predominantly in Madagascar, Togo, and Senegal, reduced revenue by $7.3 million, highlighting the vulnerability of operations to currency fluctuations. While Adjusted EBITDA saw a marginal 1.2% increase to $149.7 million, it’s important to note that this figure includes a $4.0 million contribution from Telma Comoros. Excluding this, the Adjusted EBITDA actually experienced a slight decrease of 1.5%, indicating underlying cost pressures.
Strategic Acquisitions Fueling African Expansion
Despite these cost and forex pressures, Axian continues to strategically expand its African footprint. The acquisition of an additional 50% of Telecom Comores Holding in May 2024 (now Telma Comoros), and the acquisition of Aptus Solutions Limited (trading as Gofiber) in Tanzania in March 2025, underscore Axian’s commitment to consolidating and expanding its market presence and service offerings across the continent.
Outlook on Africa’s Digital Future
Axian Telecom’s Q1 2025 results reflect a company that is actively growing its subscriber base and expanding its infrastructure across Africa. While facing understandable challenges related to operating costs and foreign exchange volatility inherent in a diverse market landscape, its strategic investments and strong performance in key countries like Tanzania and Madagascar signal a determined trajectory towards further digital transformation and connectivity across the continent.
