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Airtel Africa Profit up 1.7% to $523m as Customer Base Hits 138.5 mln

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Airtel Africa plc has recorded profit of $523m, up 1.7% as its customer base hit 138.5 million people, according to results for nine-month period ended 31 December 2022.

Highlights from the results

  • Mobile money transaction value increased by 37.0%, to an annualised value of almost $100bn in Q3’23.
  • Revenue in reported currency grew by 12.1%, to $3,914m with Q3’23 growth of 10.7%.
  • Revenue growth in constant currency was 17.3% (18.0% in Q3’23) driven by double digit growth across all reporting segments.
  • Mobile Services revenue in Nigeria grew by 20.9%, in East Africa by 11.9% and in Francophone Africa by 11.8% (and across the Group by 15.9%, with voice revenue growth of 12.7%and data revenue up 22.3%). Mobile Money revenue grew by 29.8%, driven by 32.5% growth in East Africa and 21.7% in Francophone Africa.
  • EBITDA was $1,916m, up 12.6% in reported currency and 17.4% in constant currency, with an EBITDA margin of 49.0%, increasing 20 basis points in reported currency and broadly flat in constant currency.
  • Profit after tax was $523m, up 1.7%, as EBITDA growth was partially offset by higher foreign exchange and derivative losses of
  • EPS before exceptional items was 10.8 cents, a reduction of 5.8% largely driven by higher foreign exchange and derivative losses of $184m. Basic EPS increased to 12.5 cents (up by 6.3%) as a result of deferred tax asset recognition in Kenya. EPS before
    exceptional items and excluding foreign exchange and derivative losses increased by 21.6%.
  • Capex increased 5.8% to $457m, in line with guidance, as it continues to invest for future growth. Additionally, it acquired spectrum in Nigeria, DRC, Tanzania, Zambia and Kenya over the nine-month period.
  • In July 2022, the Group prepaid $450m of outstanding external debt at HoldCo. The remaining debt at HoldCo is now $550m, falling due in May 2024. The leverage ratio of 1.4x was slightly higher than the September 2022 level (1.3x), largely driven by the
    acquisition of spectrum in Nigeria.

Segun Ogunsanya, chief executive officer(CEO) Airtel Africa, said:

“Providing affordable, innovative and essential services to customers in our 14 markets with unparalleled network quality and customer service is integral to our ambition of transforming lives across Africa. These strong results are testament to this strategy
despite the current macro-economic and geopolitical uncertainties. The execution of our six-pillar strategy continues to provide the foundation for growth, driving 10% customer growth, supported by 14% growth in data customers and over 22% growth in mobile
money customers. Higher usage across voice, data and money, have contributed to further ARPU growth of over 7%, resulting in 18% revenue growth in the quarter as penetration across each segment continues to increase. I am particularly excited by the performance
of our mobile money business, with annualized transaction value reaching nearly $100bn, as we continue to drive financial inclusion in the continent.”

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