Airtel Africa Plc shares reversed early intraday gains to finish about 7% lower on Friday, even after the company released third-quarter results that showed robust operating performance across several metrics.
The group reported third-quarter EBITDA of $836 million, a 31.0% increase on a constant-currency basis, and expanded margins to 49.6%, an improvement of 278 basis points year-over-year. Management attributed a significant portion of the momentum to its Nigeria operations, where mobile revenue climbed 52.9% in constant currency, supported by tariff changes and higher data usage.
Chief executive officer Sunil Taldar framed the outcomes as validation of the company strategy and an indication of strengthening operating and financial trends. He said the company stepped up spending during the quarter to boost network coverage and increase data capacity, while also extending its fibre footprint.
"These results highlight the strength of our strategy, with strong operating and financial trends across the business," said Sunil Taldar. "During the quarter, we accelerated investment to enhance coverage and data capacity while also expanding our fibre network."
Customer metrics showed ongoing expansion. Total customers rose 10% to 179.4 million, while data customers increased 14.6% to 81.8 million. Smartphone penetration climbed 3.9 percentage points to 48.1%, and data consumption per customer rose to 8.6GB per month from 6.9GB in the prior period.
Airtel Money reached two milestones in the quarter, surpassing 50 million subscribers and recording annualized total processed value above $200 billion. Customer numbers for Airtel Money increased 17.3% to 52.0 million. The company reiterated that it remains on track for the listing of Airtel Money in the first half of 2026.
Leverage metrics also improved, reflecting the stronger EBITDA generation. Reported leverage decreased from 2.4x to 1.9x, and lease-adjusted leverage moved down to 0.7x from 1.1x a year earlier, with management citing the EBITDA improvement as the primary driver of the reduction.
Regional performance beyond Nigeria was positive. East Africa posted constant-currency revenue growth of 12.1% in the quarter, while Francophone Africa recorded a 16.1% rise in constant-currency revenue.
Despite these operating gains, the share price reaction - a reversal from early gains to a roughly 7% decline - indicates market sensitivity to earnings releases and other forces that can affect investor sentiment.
Separately, the company referenced analytical tools that assess stock prospects. ProPicks AI evaluates companies such as Airtel Africa using more than 100 financial metrics and highlights stocks based on fundamentals, momentum and valuation. The commentary noted that the AI has identified notable past performers and can indicate whether Airtel Africa features in current strategies, referencing historical winners including Super Micro Computer (+185%) and AppLovin (+157%).
Contextual takeaway - Airtel Africa delivered strong operational results across revenue, EBITDA and margins, and reported continued growth in its mobile-money business and customer base. Nonetheless, the share price fell sharply after an initial jump, reflecting market reactions that are not always aligned with reported improvements in fundamentals.