Airtel Africa shares (LON:AAF) have taken a pause this morning, pulling back 1.6%, having risen 7.3% on Thursday and hit fresh all time highs just below the psychological 200p threshold (199.09).
The recent rally has been fueled by a stunning first-quarter 2025 profit of $156 million, reflecting a turnaround from the past year.
Airtel Africa's Q1 2025 performance was boosted by several key factors. Revenue climbed by 24.9% to $1.41 billion, primarily driven by tariff adjustments and strong performance in Francophone Africa.
Even when adjusted for currency fluctuations, the company achieved a 19% revenue growth in constant currency terms, reaching $1.16 billion. .
Furthermore, the mobile money segment continues to be a significant growth driver.
The company reported a 28% increase in constant currency revenue and a 29% rise in transaction value in this segment.
In addition to strong financial performance, Airtel Africa has made significant strides in debt reduction, achieving a zero-debt position at the holding company level. The company fully repaid its outstanding debt during Q1 2025 and continues to focus on reducing foreign currency exposure to mitigate the impact of currency devaluation.
The company has also launched a comprehensive cost optimization program, targeting reductions in network and distribution costs. Initial successes have been reported, with sustainable savings expected to continue throughout the year. These efforts to improve operational efficiency will further enhance the company's profitability and competitiveness.
Shares hitting a new high is undoubtedly a bullish signal, with some profit taking likely taking place near the psychologically important 200p level. With fundamentals improving, and the bulls behind the stock after a 65% YTD rally, a firm break on strength could signal further heights. In the near term, a retest of 185p cannot be dismissed, with bulls looking for the level to provide support should it come.
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