Airtel Africa launches 2nd tranche of $100m buyback phase with over $55m as returns target

African telecom giant, Airtel Africa, has announced the commencement of the second tranche of its $100m share buyback programme, where the repurchase is expected to yield a maximum of $55m and will end on or before November 19, 2025.

According to a statement filed on the Nigerian Exchange Limited on Wednesday, the company said the second phase of the repurchase is a continuation of the first tranche, which concluded earlier this year. 

“Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, is pleased to announce the commencement today of the second tranche of its $100m share buy-back programme (the “Programme”). This is further to its announcements on 23 December 2024 and follows the completion of the first tranche of the Programme,” the statement partly read.

As part of the facilitation process, Airtel explained that it would collaborate with Barclays Capital Securities Limited, which will carry out on-market purchases of the company’s ordinary shares, while Airtel Africa will subsequently purchase those shares from Barclays. It added that the Broker will act as a riskless principal who makes decisions independently of the Company.

The mobile operator highlighted that the repurchase would adhere to the benchmark approved by its shareholders during the annual general meeting held on 3 July 2024, where it received authority to buy back up to 374,141,187 ordinary shares. Following the completion of the first tranche, 302,567,123 shares remain under that authority. Airtel Africa explained that the programme will be executed in compliance with the Financial Conduct Authority’s UK Listing Rules, as well as the Market Abuse Regulation.

Also Read: Airtel Nigeria revenue fell by 30.4% to $1.04bn, returns to profit in African markets.

While reinstating the initiative behind the programme, the company clarified that the sole purpose of the share buyback programme is to reduce its capital base, noting that all shares repurchased during the exercise will be cancelled. 

“Any purchases of ordinary shares under the buyback programme will be carried out in accordance with certain pre-set parameters set out in the agreement with Barclays,” it said while emphasising that share repurchases may occur even during the company’s closed periods, as permitted by the agreement.

A look at Airtel Africa’s first tranche

Airtel Africa’s second buyback phase, launched in December 2024, is in line with its commitment to see through Airtel’s existing capital allocation policy targeted at reinforcing the company’s continued growth potential, the consistent cash accretion at the holding company level, and the balance sheet’s strength.

Explaining the share buyback process, Airtel explained that it would be executed in two tranches. The first, which concluded on April 24, 2025, while the second tranche, which commenced yesterday, is expected to reach its conclusion by November 2025.

As part of Airtel’s plan to reduce its capital, the company embarked on a buyback programme in February following the release of its nine-month results up to December 2023. 

“This buy-back programme reflects the significant progress made in recent years to reduce leverage and strengthen the Company’s balance sheet.  In light of the cash accretion at the holding company level, the current leverage, and the consistently strong operating cash generation, the Company is well positioned to undertake this share buy-back to enhance shareholder returns which is consistent with its existing capital allocation policy,” the company last year.  

The first buy-back tranche, which commenced in March and ended in August 2024, amounted to a maximum of $50 million. The buyback process represents an opportunity for stakeholders to benefit from the company’s decision to optimise its capital structure.

In its latest report for the financial year ending March 31, 2025, Airtel Africa returned to profit with a revenue of $328 million – a huge 468.2 per cent surge compared to the $89 million loss in FY’24, which was significantly impacted by derivative and foreign exchange losses mainly in Nigeria.

However, its revenue declined by 0.5 per cent to $4.95 billion for the period. The company attributed currency devaluation to a strong impact on reported revenues, while tariff adjustments in Nigeria contributed to a further quarter of accelerating growth.

Airtel Africa now boasts a 166.1 million customer base, signalling an 8.7 per cent increase. Smartphone penetration grew by 4.3 per cent to 44.8 per cent, data customers increased by 14.1 per cent to 73.4 million, with data usage per customer increased by 30.4 per cent to 7.0 GB.

The company continued to uplift customer experience and sustained network investment with the rollout of 2,583 new sites and approximately 3,300 km of fibre, supporting increased data capacity across Africa.