Airtel Africa delays IPO of mobile money unit to latter half of 2026 (updated)
08/05/2026 07:25
Airtel Africa says energy inflation will pressure margins Airtel Money IPO moved to second half of 2026, from first Fiscal 2026 results beat expectations Adds details on Airtel Africa's results, market context throughout May 8 (Reuters) - Airtel Africa AAF.L on Friday delayed the planned initial public offering of its mobile money business to the second half of 2026 and forecast a near-term margin squeeze due to higher costs arising from the ongoing U.S.-Israeli war against Iran. The war has triggered an unprecedented crunch in crude supplies from the Middle East and upended supply chains, raising energy and logistics costs for companies everywhere, triggering forecast cuts, project delays and cost-cutting drives. Several firms have also delayed IPOs as the war drives market volatility. The African-focussed telecoms group said that market conditions were now unfavourable, while rising energy costs were also likely to weigh on Airtel Africa's near-term core profit margins. "We have made good progress and remain committed to the listing as market conditions allow," it said in a statement. The company had earlier planned to list Airtel Money in the first half of 2026. The unit is its third-largest business, contributing 21.1% of total revenue. For the year ended on March 31, the group posted core profit of $3.16 billion on total revenue of $6.42 billion, beating market expectations of $3.13 billion and $6.36 billion, respectively, according to a company-compiled poll. The operator's fiscal 2026 results benefited from a strong demand for mobile networks, adoption of new digital technologies and artificial intelligence. Kenyan telecoms group Safaricom SCOM.NR on Thursday posted results also above market expectations, backed by strong demand. (Reporting by Prerna Bedi in Bengaluru; Editing by Sonia Cheema and Tomasz Janowski) ((Prerna.Bedi@thomsonreuters.com; +91 98052 24616;))