• Airtel Africa and pan-African telco MTN have reported robust figures for the January-March quarter
• Orange and Vodafone are also benefitting from their African presence
• But telcos and policymakers on the continent cannot afford to rest on their laurels

Telecom operators with a strong or partial reliance on Africa have been producing some enviable revenue and earnings figures for the first three months of 2025, at least compared to operations in more developed markets such as Europe.

Pan-African mobile operator MTN is the latest regional telco to unveil its results for the January-to-March period. Although reported figures have been somewhat battered by foreign currency exchanges, the group was still able to announce a 10.4% year-on-year rise in first-quarter service revenues to 47.36bn South Africa rand ($2.58bn). Excluding those pesky currency fluctuations, service revenues were up by a very healthy 19.8%, boosted by growth of around 40% in both Ghana and Nigeria.

In addition, MTN posted a 23.1% increase in reported group earnings before interest, taxes, depreciation and amortisation (EBITDA), again supported by strong growth in Ghana, Nigeria and Uganda. It partly attributed its “robust” performance to data traffic growth of 30.4% and a 13.9% increase in fintech transaction volumes, while the total subscriber base expanded by 4.7% to 296.8 million.

Meanwhile, regional peer Airtel Africa, a subsidiary of giant Indian telco Bharti Airtel, also pointed to strong growth in mobile data and mobile money in the 12 months to 31 March 2025. Revenues increased by 21.1% to $4.9bn, albeit in constant currency. Mobile service revenue was up 19.6% in constant currency, driven by a 30.5% rise in data revenue as well as 29.9% growth in mobile money revenue. However, reported revenues fell slightly by 0.5% during the financial year owing to the impact of currency devaluations.

The situation looked more positive for Airtel in the January-to-March quarter, when reported revenue rose 17.8% to $1.3bn and operating profits were up by 8.4% to $376m. The operator’s overall customer base now stands at 166.1 million. 

Africa pulls its weight … 

MTN is now present in 16 markets across the region, while Airtel Africa says it has operations in 14 countries in sub-Saharan Africa. The two groups also compete in a number of markets with Vodafone-owned Vodacom and local Orange affiliates, and it’s fair to say that both of these predominately European groups have reasons to be thankful for their African presence. 

Indeed, Orange’s Africa & Middle East (AME) division once again came to the rescue as the giant French telco reported a 0.6% year-on-year increase in first-quarter group revenues to €9.9bn. While its flagship French operations suffered a slight dip in sales, down by 1.3% to €4.3bn, the AME division ramped up its revenues by 12.8% to almost €2.05bn and produced double-digit revenue growth for the eighth consecutive quarter.

Like Airtel, Vodafone’s financial year ends in March, and the group does not publish its fiscal fourth-quarter and full year results until 20 May. However, the telco’s third quarter to the end of December 2024 also revealed stronger organic revenue growth in Africa compared to the UK, Germany and elsewhere in Europe.

For example, Vodafone’s organic service revenue growth rate in Africa improved to 11.6% (reaching €1.61bn), compared to 3.3% in the UK and 2.6% in other European countries and Turkey. In Vodafone’s somewhat troublesome market of Germany, organic service revenue fell by 6.4%. Overall, Vodafone reported a 5% increase in total revenue to €9.8bn in the fiscal third quarter. 

… but many obstacles lie ahead

To be sure, the recent results point to strong demand for mobile services in Africa, particularly for data and fintech services, and this trend looks set to continue. According to a May 2025 report from McKinsey, mobile subscriber penetration in Africa is expected to reach 50% by 2030, with 751 million unique mobile subscribers, up from 44% (527 million subscribers) in 2023. 

At the same time, McKinsey and others warn that telcos will need to address a number of obstacles, such as the cost of devices, if they are to create new value for businesses and consumers in the future.

A recent mobile economy report from mobile operator trade body the GSMA also noted that while the mobile sector in sub-Saharan Africa has huge and untapped potential for growth, it is hindered by onerous taxes, high import duties on handsets, lack of technology-neutral spectrum and underperforming universal service funds (USFs).

To fully realise the benefits of connectivity, said Angela Wamola, the GSMA’s head of sub-Saharan Africa, “it is essential for operators, policymakers and stakeholders to address affordability barriers, support infrastructure expansion and foster collaborations that drive digital inclusion and economic impact.

- Anne Morris, Contributing Editor, TelecomTV