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CardinalStone Company Update - AIRTEL AFRICA Plc - Operational strategies to support margins
(Source: CardinalStone Research, Date: 23-Dec-2024)
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AIRTELAFRI: Operational strategies to support margins

Airtel Africa Plc (AIRTELAFRI) is poised to return to profitability in FY'24/25, driven by strategic efforts to eliminate dollar-denominated debt at the HoldCo level by localising debt within its respective OpCos. To support this premise, AIRTELAFRI, in its half-year result, reported a significant 60.2% YoY decline in net FX losses to $260.00 million, which provided a much-needed boost to PBT (14.8x YoY to $178.00 million). We expect FY'24/25 PAT to settle at $230.04 million from a loss of $89.00 million in the preceding year.


In FY'25/26, we anticipate that revenue improvements, lower OpCo FCY debt exposure, and zero dollar-denominated debt at the HoldCo level will likely support bottom-line performance. Consequently, we estimate a lower net FX loss of $201.44 million and a higher PAT of $488.60 million in FY'26F.

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CardinalStone Research 

Lagos Office: 5 Okotie Eboh Street 

                       South-West Ikoyi, Lagos

                       Nigeria

Abuja Office: 4 Misratah Street

                       Wuse II, Abuja, Nigeria

Tel:                 +234(1) 7100433, 7100434

Email:            research@cardinalstone.com 

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