Airtel Africa Plc (AIRTELAFRI) is poised to return to profitability in FY'24/25, driven by strategic efforts to eliminate dollar-denominated debt at the HoldCo level by localising debt within its respective OpCos. To support this premise, AIRTELAFRI, in its half-year result, reported a significant 60.2% YoY decline in net FX losses to $260.00 million, which provided a much-needed boost to PBT (14.8x YoY to $178.00 million). We expect FY'24/25 PAT to settle at $230.04 million from a loss of $89.00 million in the preceding year.
In FY'25/26, we anticipate that revenue improvements, lower OpCo FCY debt exposure, and zero dollar-denominated debt at the HoldCo level will likely support bottom-line performance. Consequently, we estimate a lower net FX loss of $201.44 million and a higher PAT of $488.60 million in FY'26F.
