Axian Telecom’s Q1 2025 financial results reflect a robust revenue increase, propelled primarily by its operations in Tanzania and Madagascar.
Total revenue surged 15.9 percent year-over-year to reach $373.7 million, with outstanding performances in key African markets playing a pivotal role in this growth.
Among its markets, Madagascar recorded a solid 16.6 percent revenue increase, while Tanzania led with an impressive 26.6 percent gain.
Operating across nine major African countries—Tanzania, Madagascar, Togo, Uganda, the Democratic Republic of the Congo, Senegal, Réunion, Mayotte, and the Comoros—Axian Telecom continues to demonstrate a strong commitment to advancing Africa’s digital revolution.
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Axian Telecom’s subscriber sees 4.8 million increase
The number of subscribers provides a powerful narrative about growing reach and digital inclusivity.
Axian saw a startling 4.8 million increase in revenue-generating subscribers (RGS) over the 12 months ending March 31, 2025, bringing the total to 40.8 million.
Tanzania was the primary growth engine, adding 3.3 million RGS and contributing to a 20.3 percent increase in revenue.
Madagascar and Togo also experienced significant subscriber growth, with increases of 1.2 million (11.9 percent) and 0.3 million (6.5 percent), respectively.
Active data users increased to 12.7 million
The Group saw a 1.3 million rise in active data customers, with Senegal and Tanzania leading the way at 12.7 million.
In addition to Tanzania’s impressive 2.1 million growth (27 per cent), Madagascar and Togo made significant contributions, bringing the total number of mobile financial services (MFS) customers up by 2.8 million to 15.7 million.
Investment in infrastructure
Building infrastructure continues to be a key component of Axian’s approach.
The company added 150 owned towers via the acquisition of Telma Comoros, increasing its owned tower count by 709 and its shared tower count by 759 during the 12 months.
Additionally, 233 more owned towers were added to the Tanzania market, while businesses in Madagascar and Uganda also increased their number of towers.
Even while the overall Tenancy Ratio has somewhat decreased, the deliberate conversion of Owned Towers to Shared Towers, especially in Tanzania, shows a focus on maximising infrastructure utilisation and maybe luring more tenants.
Challenges
However, the period under review was not without its challenges. This is as a closer examination, however, shows a more nuanced picture, with growing operating expenses and foreign exchange headwinds affecting total profitability
Due to several variables, total operational costs rose by $50.2 million annually.
Particular difficulties were higher commissions to sales agents, higher technological operation expenses due to network development and maintenance (particularly in Madagascar and Tanzania, which were affected by a severe cyclone season), and higher device sales costs in Madagascar and Tanzania.
New revenue-based taxes were introduced in Togo and Madagascar, which significantly increased regulatory expenses.
Additionally, revenue was lowered by $7.3 million due to unfavourable foreign exchange translation impacts, mainly in Madagascar, Togo, and Senegal, underscoring how susceptible operations are to currency swings.
Adjusted EBITDA increased by 1.2% to $149.7 million
Although Adjusted EBITDA increased by just 1.2 per cent to $149.7 million, it’s crucial to remember that Telma Comoros contributed $4.0 million to this amount.
When this is removed from the equation, Adjusted EBITDA actually fell by 1.5 per cent, a sign of underlying cost pressures.
Notwithstanding these financial and exchange rate constraints, Axian is nonetheless systematically growing its presence in Africa.
Axian’s acquisition of Gofiber in Tanzania and 50% shares in Telma Comoros
Axian’s dedication to strengthening and growing its market presence and service offerings throughout the continent is demonstrated by its acquisition of Aptus Solutions Limited (doing business as Gofiber) in Tanzania in March 2025 and its purchase of an additional 50 per cent of Telecom Comores Holding (now Telma Comoros) in May 2024.
As evidenced by its Q1 2025 performance, Axian Telecom is actively developing its customer base and infrastructure throughout Africa.
Its strategic investments and impressive performance in key markets like Tanzania and Madagascar, despite the understandable difficulties associated with operating costs and foreign exchange volatility that come with a diverse market landscape, indicate a determined trajectory towards further digital transformation and connectivity throughout the continent.