Airtel Malawi Revenue Rises 33.8% as Currency Losses Hit Profit

Airtel Malawi Plc  recorded strong revenue growth in the first half of 2026, but higher foreign exchange losses more than halved its profit after tax.

Revenue for the six months ended 30 June 2026 rose 33.8% to K219.1 billion, up from K163.8 billion in the same period a year earlier. The growth was supported by a 9.3% increase in the customer base to 9.1 million and a 21.9% rise in average revenue per user to K4,141 per month.

Voice revenue increased 26.5% to K109.5 billion, while data revenue grew 46% to K88.7 billion. Other revenue, including mobile money, rose 26.5% to K20.9 billion.

EBITDA increased 34.5% to K90.7 billion, with the margin improving slightly to 41.4%. Operating profit also rose 34.7% to K70.9 billion, supported by revenue growth and cost optimisation. However, operating expenses increased 33.3% to K128.4 billion, reflecting higher fuel prices and continued network expansion.

Profit was significantly affected by higher finance costs. Net finance costs surged 230.3% to K54.4 billion, largely due to foreign exchange losses linked to the repayment of foreign-currency liabilities and related financing costs. Net foreign exchange losses rose to K41.5 billion from K7.7 billion a year earlier.

As a result, profit before tax fell 54.3% to K16.6 billion, while profit after tax declined 54.2% to K10.3 billion from K22.4 billion. Earnings per share dropped to K0.93 from K2.04. The profit figure was within the K9.6 billion to K11.7 billion range indicated in the company’s June trading statement.

Airtel Malawi significantly increased investment during the period, with capital expenditure rising 190.9% to K50.4 billion. The company added 74 network sites as it expanded capacity to meet rising traffic. Data customers increased 12.7% to 2.9 million, while smartphone penetration reached 34.3%.

Higher investment pushed net debt to EBITDA to 1.13 times, compared with 0.74 times at the end of 2025. The company said the leverage level remains within the range of its industry peers. Approved capital commitments stood at K38.8 billion.

The company’s cash position also weakened during the period, with cash and cash equivalents falling to K24.4 billion from K82.4 billion at the start of the year. The cash flow statement recorded K25.6 billion in dividends paid, while the equity statement showed K38.5 billion declared from 2025 profit. Total shareholders’ equity declined to K33.1 billion from K61.4 billion at the end of 2025.

The board did not declare an interim dividend, citing continued uncertainty in the economic and operating environment. It said it would continue to assess the outlook and consider future distributions as appropriate.

Airtel Malawi said it sees an attractive medium-term growth opportunity in the country and plans to continue investing in its network to support mobile penetration and data adoption. It identified currency uncertainty, fuel prices and unfavourable agricultural output as key risks to the business.