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Wednesday, March 29, 2023

Airtel Africa Net Income Surges 149.10% as Subscriber Base Jumps

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Airtel Africa, which provides telecom and mobile money services, with a presence in 14 countries in Africa – saw net income surge in all regions and across key services.

During quarter one of 2022, net income surged 149.10 percent to $142 million from $57 million as the previous year.

The stellar performance is despite restriction of SIM registration in Nigeria and unstable macroeconomic environment across Africa.

Airtel Africa logged strong revenue growth across all regions, including Nigeria (up 33.3 per cent), East Africa (14.3 per cent) and Francophone Africa (11.4 per cent).

Interestingly, the company’s subscribers have risen 8.30 percent to 121 million, as it continues to expand across the continent with a view to meeting the needs of customers.

Analysts say continued focus on modernisation and rollout of network, along with simplifying the products and improving distribution, have helped add impetus to the telecoms ARPUs (Average Revenue Per User) across voice, data and mobile money.

The company is generating profit from core business, while delivering higher returns to shareholders.

Underfirlining earnings before interest taxation depreciation and amortization (EBITDA) spiked by 42.40 percent to $534 million in the first quarter of 2022 from $479 million the previous year.

Operating profit followed the same growth trajectory as it increased by 67.60 percent to $352 million in the period under review from $210 million the previous year.

Despite these challenging times as the threat of the third wave of coronavirus could soar the gradual economic recovery and vaccination in Africa remains low, Airtel Africa’s model has so far proven resilient.

The telecoms giant continues to see huge potential across voice, data and mobile money due to the low penetration levels in Africa, as it continues to partner the nations in bridging the digital divide and enhancing financial inclusion.

It also remains committed to efficiently and effectively deliver services that help to improve the lives, communities and economies we serve.

Airtel Africa’s margin expansion validates strong revenue growth, cost containment, and reduction in leverage, which is why it has a very solid balance sheet that withstands macroeconomic uncertainties.

Net margins increased to 12.80 percent in the period under review from 6.70 percent the previous year.

EBITDA margins rose to 48 percent in the first quarter of 2022 from 44.10 percent the previous year. Similarly, EBIT margin moved to 31.70 percent in the period under review from 24.70 percent the previous year.

The company is utilizing the resources of its owners in generating higher profit as return on average equity 4.10 percent in the period under review from 1.70 percent the previous year.

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