Airtel Africa Shares (AAF) Breakout Above 180 To Make New High

Airtel Africa shares (LON: AAF) have broken out above the 180p mark, reaching a new 52-week high of 183.70p during the early part of today's LSE trading session. After a few years of consolidation, and slow decline leading into this year, the shift in sentiment has been clear to see.

The share price has now extended the year to date gain to an impressive 55.68%, after a 2.5% increase so far today. This comes amidst a backdrop of significant developments, including the planned listing of Airtel Money, an ongoing share buyback program, and increasing stake from its parent company, Bharti Airtel.

A Closer Look at Recent Developments

The company recently announced its final results for the financial year ended March 31, 2025, recommending a final dividend of 3.9 cents per share, payable on July 25, 2025, to shareholders on record.

Most notably, the announcement on May 8, 2025, of plans to list its mobile money services unit, Airtel Money, in the first half of 2026 has been met with enthusiasm. This strategic move is designed to enhance the visibility and autonomy of Airtel Money, potentially unlocking significant value for shareholders and attracting new investments. As digital financial services continue to expand across emerging markets, the listing positions Airtel Africa to capitalize on this growth.

Furthermore, Airtel Africa's ongoing share buyback program, initiated in March 2024, has contributed to positive investor sentiment. The program, with a total value of up to $100 million, aims to reduce capital and enhance shareholder returns. The first tranche concluded on April 24, 2025, and the second tranche commenced on May 15, 2025, with an expected conclusion by November 2025. This buyback reflects the company's strong operating cash generation and its commitment to returning value to its shareholders.

Bharti Airtel, the parent company of Airtel Africa, also signaled its confidence in the African arm by announcing plans on February 21, 2025, to increase its stake by up to 5%, raising its holdings from 57.29% to 62.29%. This move further underscores the parent company's belief in Airtel Africa's growth prospects and its commitment to the African market.

Despite facing foreign exchange headwinds, particularly due to currency devaluation in Nigeria and Malawi, Airtel Africa reported a 4% increase in revenues to $1.27 billion in the third quarter of fiscal year 2025. Adjusted EBITDA for the quarter also exceeded forecasts at $594 million, showing a 3.5% uptick. This resilience in the face of economic challenges has further bolstered investor confidence.

Compared to its peers in the communication services sector, Airtel Africa holds a competitive position. While Vodafone Group and BT Group boast significantly larger market capitalizations, Airtel Africa is closing the gap on companies like Informa and Pearson.

While challenges remain, the company's commitment to innovation, shareholder value, and expansion in the African market suggests a promising future. At new highs, and with a period of price discovery to follow, we will be watching to see if 180p can turn into support, alongside developments relating to the Airtel Money listing and the impact of the share buyback program as the weeks and months progress.