Airtel Africa

Airtel Africa Dividend Analysis and Summary

• Dividend: Interim dividend of 2.84 US cents per share (up 9.2%, in line with the progressive policy).
• Ex-dividend date (LSE): 06/11/2025 (NGX: 05/11/2025).
• Record date: 07/11/2025.
• Payment date: 12/12/2025.
• Currency election deadline: 25/11/2025.
• Context: Prior final dividend of 3.90 US cents was paid on 25/07/2025.
• Estimated cash cost of interim dividend: ~$104m (2.84c x ~3.66bn shares).

• Coverage and cash generation: H1’26 operating free cash flow of $1,129m and net cash from operations of $1,388m comfortably cover the ~$104m interim payout. H1 EPS of 8.3c implies interim DPS coverage of ~2.9x on reported earnings.
• Earnings momentum: Revenue up 24.5% (constant currency), EBITDA up 31.5% (CC) with margin expanding to 48.5%. PAT of $376m (benefiting partly from FX gains) supports distribution capacity.
• Balance sheet: Leverage improved to 2.1x net debt/EBITDA (lease-adjusted 0.8x), providing headroom for ongoing dividends and buybacks.
• Capital allocation mix: Capex is stepping up (FY’26 guidance $875–$900m), but strong FCF plus moderate leverage underpin dividend sustainability. The $100m buyback (to complete by 31/03/2026) enhances per-share metrics without jeopardising coverage.
• Growth trajectory: The +9.2% interim increase aligns with the stated progressive policy. Given robust H1 trading, ample FCF, and margin expansion, the trajectory appears maintainable barring adverse macro/FX shocks.